UK to Probe Private Firm's Failure to Pay Fine to Tanzania

    An employee with the BAE Systems. Photo by: © BAE Systems

    The U.K. government is set to launch an inquiry into why BAE Systems, a U.K.-based company providing security, defense and aerospace equipment, has failed to provide the Tanzanian government with the $40 million fine it agreed to pay the country in February.

    The fine serves as the company’s settlement payment in a bribery probe on the supply of radar systems to Tanzania.

    As part of the inquiry, officials from BAE Systems, the U.K. Serious Fraud Office and the Department for International Development will testify before a team led U.K. Secretary of State for International Development Andrew Mitchell, The East African newspaper says. The inquiry team will attempt to identify ways to ensure that BAE Systems pays the fine and that its payments are used for development projects in Tanzania.

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    About the author

    • Ivy Mungcal

      As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.