BAE systems has agreed to honour its settlement with the Serious Fraud Office and make an immediate payment of £29.5 million to the Tanzanian Government following pressure from MPs, a letter published by the International Development Committee reveals.
The defence manufacturer has faced accusations that it delayed payments for up to 16 months and was questioned on the matter by the committee at a public hearing in July. The company originally said it would pay the settlement in tranches, but after criticism from MPs it has now agreed to make one immediate payment.
Malcolm Bruce MP, Chairman of the International Development Committee said:
"We're pleased that BAE systems has agreed to pay the money it owes to the people of Tanzania straight away.
This is the right decision for the reputation of British business, for BAE systems and for the children of Tanzania and their teachers who will benefit from the additional textbooks, desks, teachers' houses, and other education materials that this payment will go towards. The last step is make the payment promptly to the Government of Tanzania and I look forward to BAE confirming that it has done this."