BAE paid agency to spy on peace group

The police have been called in after it emerged in court documents that the weapons manufacturer BAE Systems paid a private investigation agency to spy on a peace campaigning group.

BAE paid £2,500 per month to LigneDeux Associates, whose agent Paul Mercer passed information about the Campaign Against Arms Trade (CAAT) to BAE's director of security Mike McGinty.

BAE insists it expected Mr Mercer to operate within the law, but he has now admitted providing them with a legally privileged document internal to CAAT. This sensitive document concerned the impending judicial review brought by CAAT to challenge the decision late last year of the Serious Fraud Office to end an inquiry into bribery claims stemming from BAE's arms deals with Saudi Arabia.

CAAT spokesperson Symon Hill said: "CAAT is an open and non-violent organisation with thousands of supporters from all walks of life. BAE's underhand methods further call into question the intimate relationship between BAE and the Government."

CAAT has now referred the matter to the police. BAE's spying operation on CAAT came to light after the company's lawyers discovered the information that had been obtained on the peace campaigners and returned it to them. However, BAE refused to disclose how it came by the internal CAAT documents. It is thought that the information related partly to CAAT's ability to fund the judicial review. CAAT then went to the High Court, to force BAE to disclose its sources.

BAE said: "BAE Systems does not carry out, condone or approve of any activities which are unlawful or which could bring the reputation of the company into disrepute."