BAE systems fined for accounting failures

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The Independent Online

Defence giant BAE Systems was today fined £500,000 for failing to keep proper records of payments to an adviser in the east African country of Tanzania.

Payments totalling about 12.4 million US dollars (£7.7 million) were made to two companies controlled by Tanzania-based businessman Shailesh Vithlani between January 2000 and December 2005, Southwark Crown Court has heard.

BAE pleaded guilty to one count of breaching its duty to keep accounting records contrary to section 221 of the Companies Act 1985 following a written settlement with the Serious Fraud Office on February 16.

The company was also ordered to pay £225,000 costs.