BAE Systems fine: it won't be easy to pay Tanzania

Despite the Serious Fraud Office's investigation of BAE going on for years and a plea bargain being agreed back in February, there is no mechanism in place to pay the reparations to Tanzania.

BAE walked out of court this morning £750,000 poorer.

The headline sum in BAE's plea bargain with the Serious Fraud Office may be £30m, however the only money the company is legally obliged to pay is a £500,000 fine and costs of £250,000 as ordered by Mr Justice Bean.

Both are in relation to one charge of failing to keep accounting records relating to the sale of a $40m (£28m) air traffic control system to Tanzania.

The balance of the £30m agreed with the SFO is to be paid in reparations to "the people of Tanzania" by BAE.

After the sentencing, Richard Alderman, the director of the Serious Fraud Office (SFO), said: “I expect BAE to honour the agreement. I expect the company to pay it as quickly as possible.”