October 18, 2008 (LPAC)--The Organization of Economic Cooperation and Development has issued a 75 page reported on the corruption by BAE systems and the British government in bribery allegation in massive arms sales to Saudi Arabia. This is the infamous transfers of hundreds of millions of dollars in bribes by the British government and BAE to Saudi Prince Bandar. These bribes were deposited in banks in the United States and used by Bandar and his British masters as a massive slush fund to finance intelligence operations in the United States and all over the world. The U.S. Department of Justice has been investigating BAE and these bank accounts for violation of money laundering laws.

The OECD report, drafted by its Working Group on Bribery, headed by Swiss law Professor Mark Pieth condemned the British government's tolerance of corruption, especially its failure to pass an effective anti- corruption law. The study group said it was "disappointed and seriously concerned" by British behavior. The report stated that despite promising for the last 6 years to pass a new anti corruption law and prosecute major cases, the British government has done nothing.

The report goes so far as to say that if Britain continues to refuse to conform with its treaty obligations under the OECD's anti bribery convention it may "trigger a need for increased diligence over UK companies by their commercial partners or multilateral development banks," according to a OECD press release. This is a recourse usually reserved for countries led by allegedly corrupt dictators.

According to the Guardian, the report cites apparently unnamed officials for the British Serious Fraud Office saying that there had been "alleged bribery-related fraudulent misrepresentations by the BAE to the ECGD", which is the British governments export credit agency, which held responsibility for investigating alleged bribery. The SFO, told the investigators that they "had supplied to ECGD the evidence of bribery related fraud against it...involving alleged misrepresentations by the company to ECGD in connection with the issuance of insurance." But the export agency never acted on the allegations.

Officials of the ECGD refused to tell OECD investigators why they failed to act, claiming they were bound by "commercial confidence". BAE has denied everything.