Prosecutor shuts down Gripen bribes probe

Sweden’s top prosecutor has decided to abandon his ongoing bribery investigation in connection with the export of Saab AB’s JAS Gripen fighter jet.

Prosecutor shuts down Gripen bribes probe

Christer van der Kwast said in a statement issued by the Swedish Prosecutors’ Authority (Åklagarmyndigheten) that BAE Systems, the UK-based defence and aerospace firm at the centre of the investigation, made “large hidden payments” as a part of its efforts to sell the Gripen in the Czech Republic, Hungary, and South Africa.

“But based on the material that exists, I can’t confirm that any representative from Saab AB or Gripen International has willfully cooperated with BAE to pay out bribes after July 1st, 2004 in a way that would be punishable according to Swedish law,” said van der Kwast in a statement.

The statue of limitations has already run out on any crimes committed before that date.

Saab welcomed news of van der Kwast’s decision.

“The decision is fully in line with what we have claimed all along”, said Saab spokesperson Cecilia Schön Jansson, in a statement.

“No illegal methods have been forthcoming from Saab, and this is strengthened by the fact that the Chief Prosecutor now decided to close the investigation.”

According to Saab, the company acted in accordance with existing laws and regulations and is happy that it “now can put this behind us”.

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Fresh bribery claims in Swedish jet scandal

Swedish defence firm Saab paid around a billion kronor to shady middlemen as part of a controversial deal to sell fighter jets to South Africa, according to documents obtained by a Swedish tabloid.

Fresh bribery claims in Swedish jet scandal
A Jas 39 Gripen jet flies above Cape Town in South Africa. Photo: AP Photo/mbr/The Star

Saab's sale of 28 Jas 39 Gripen aircraft – later reduced to 26 – to South Africa has been tainted by scandal and corruption allegations ever since it took place back in 1999.

The Swedish defence giant has always denied any wrongdoing in the deal which was mainly carried out by a subsidiary owned by Saab and British BAE and has said that no evidence of any suspect deals has turned up in its internal investigations.

But according to Sweden's Expressen newspaper, internal BAE documents handed to the Serious Fraud Office (SFO), a UK-based government authority that investigates fraud and corruption, show that money was paid out to shady agents suspected of being involved in bribery.

According to the paperwork, 7.25 percent (or 13 billion kronor – $1.58 billion) of the total sales of the Gripen planes and the British Hawk aircraft was potentially handed over to secret agents. According to Expressen, the claims formed part of a UK investigation into bribery allegations linked to this cash.

Other classified documents published by the newspaper on Thursday suggest that BAE's former head of marketing for South Africa and Asia, Allan MacDonald, told SFO officers several years ago that Saab had been kept informed of all costs and the agents involved.

“I gave them more information than they had ever got before and they were informed about the arrangements with the agents on chief executive level. They knew,” the documents suggest he said.

In a statement to Expressen published on Thursday, Saab's press spokesman Sebastian Carlsson dismissed the claims that almost a billion kronor was handed to agents, but did not deny that large payouts were made.

“There's nothing strange about a person receiving compensation for the work they do. So I mean, that's not the problem, if there is a problem. The problem would in that case be what a person does,” he told the newspaper.

“If it was 7.5 or 6.5 or 4.5 or 10.5 percent [is irrelevant]. That's nothing, that's what it was like 'in the good old days'. But I can tell you that if back then you had these kinds of commission-based contracts in the export industry, the sums could sometimes be high,” he added.

Saab is one of the world's leading defence and security companies and has around 14,700 staff around the world. It is not connected to Saab Automobile.

Earlier this year it was ranked as one of the European arms companies best at tackling corruption by the Transparency International thinktank.