SFO secures £10 million penalty against defence firm over failure to prevent bribery

The £10 million penalty secured against Ultra Electronics Holdings Ltd, a British manufacturer operating in the defence and aerospace sector, is a significant outcome for the Serious Fraud Office (SFO) after an eight-year investigation, Transparency International UK said today.

The company was today ordered to pay the penalty plus £4.8 million in investigation costs after acknowledging accountability for failure to prevent bribery in connection with contracts in Oman and Algeria, including one worth up to £200 million.

Duncan Hames, Senior Director of Policy and UK Programmes, Transparency International UK, said:

"We welcome the SFO's determination in bringing this case to a conclusion. Defence is a well-known high-risk sector for corruption, and this sends a clear message to companies operating in it that using agents to pursue public sector contracts through bribery carries real consequences, wherever it occurs.

"The penalty is modest given the scale of the conduct and the length of the investigation, and that the costs award adds nearly half as much again is striking. We now urge the SFO to direct that same determination towards any individuals who may have conducted this activity - successfully prosecuting individuals is essential to credibly deter others from flouting Britain's strict bribery laws.

"It is also welcome that an application to anonymise individuals named in these proceedings was refused by the judge - the public and press must be able to scrutinise how cases like this are resolved if the DPA regime is to retain its legitimacy."