BAE director could quit over possible conflict of interest

 

The defence giant BAE Systems could lose one of its most prominent board directors, it has emerged.

Lee McIntire has confirmed that he would quit as a non-executive director if the Colorado-based engineer he leads, CH2M Hill, is selected to take over the £14bn-budget Ministry of Defence agency that buys the armed forces’ tanks and missiles.

One of Defence Equipment & Support’s (DE&S) major suppliers is BAE, meaning that his board role with the group could present a damaging conflict of interest should CH2M Hill become responsible for dishing out lucrative work.

Mr McIntire, who became a BAE director in June 2011, said: “In regard to the current MoD DE&S procurement should CH2M Hill be awarded the contract, I would of course give up my seat on the BAE board of directors.”

Other US engineering groups interested in taking over DE&Sinclude Bechtel and URS Corporation.

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