Sean O’Neill
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Glamorous hostesses were allegedly paid tens of thousands of pounds from a BAE Systems slush fund to attend lavish parties where a Saudi prince and his entourage were guests of honour.
According to documents seen by The Sunday Times, the money was paid to Anouska Bolton Lee and Karajan Mallinder to meet mortgage, rent, credit card and council tax bills.
The two women went to parties in a penthouse suite at the Carlton Tower hotel in Knightsbridge attended by Prince Turki bin Nasser and other senior Saudis involved in the £40 billion al-Yamamah arms deal.
The claims will revive the controversy over the Government’s decision to order the Serious Fraud Office (SFO) to abandon a long-running corruption inquiry, which had been examining BAE’s relationship with the Saudi regime.
The SFO had amassed a wealth of material and, since 2004, had been attempting to piece together the workings of the alleged £60 million slush fund. But the investigation was abandoned last December after consultations between the Prime Minister and Lord Goldsmith, QC, the Attorney-General.
The move followed pressure from Saudi Arabia, which had expressed anger at the SFO inquiry and was threatening to back out of a £10 billion deal to buy Eurofighter jets from BAE.
There were also claims that the Saudis would withdraw cooperation on counter-terrorism and intelligence.
Robert Wardle, the director of the SFO, said that the inquiry had been discontinued because of “the need to safeguard national and international security”.
Lord Goldsmith told Parliament that the investigation had been discontinued in the national interest. But allegations of political interference have persisted, and the Organisation for Economic Cooperation and Development (OECD) has expressed serious concerns over the case and asked for an explanation of the decision to drop it. The OECD also raised worries about “continued shortcomings” in British anticorruption legislation.
The payments to Ms Mallinder and Ms Bolton Lee were said to have been made in 2001 and 2002 and routed through a travel company.
Ms Mallinder, 42, a model and actress, was once engaged to David van Day, the singer in the 1980s pop duo Dollar. Ms Bolton Lee, 29, a former lingerie model, has appeared in a number of acting roles and worked as a presenter on the MTV show Blaggers.
A spokesman for BAE Systems said yesterday: “Throughout the long SFO investigation we were consistent in denying allegations of wrongdoing.
“The SFO has considered a huge volume of material over the course of its investigation which it then decided should be terminated. We are not making any comment on these continued allegations.”
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We should take steps such as occupying Saudi instead of Iraq and promoting non-fossil energy sources. Then we won't have to give them all the money for oil and thus be forced to compromise our principles by paying bribes and procuring women to get it back.
Toxteth O'Grady, USA,
The problem here is that most people think that the high class famlies-as the case of Saud Famly- don't see these things as problems or real issues. It is certain that they much care about increasing their money and entrtain themselves in any way.No matter what is it but only mater for a high standard-life.
Azooz, Luton, Uk
Lucky girls. I'd have been in there with bells on if I'd been asked! One of the girls is my friend too and there's NO WAY that she's a prostitute! Glamorous yes very - a model yes - but a prostitute? Positively not! She should sue someone. Hey! Pretty girls have been used as a marketing tool since the Queen of Sheba went to cut a deal with King Solomon back in BC2000. So what's new here? It's a fact of life - pretty girls get well paid for selling products. Just turn on your TVs. And besides, what's a party without a few glamorous girls to add colour and charm to the decor? Let's too, give the Saudis some credit too for business acumen. They are tough, shrewd business men who are hardly likely to be influenced in a billion dollar deal by a 'little bit of skirt'! Grow up everyone. The question we all need to ask here is "Why bring this up now - all these years later?" One also has to ask "Who benefits?"
Goodland - Antonia, Cannes, France
Dear Heike,
One of those women that you are so happily ignorant to label 'prostitutes' happens to be my friend. As Colin has rightly pointed out many young, pretty, aspiring girls do this sort of hostess thing, it's nothing new, neither, am I aware, is this story being touted a sex scandal. I would prefer it if you kept your judgemental, degrading and horribly misinformed insults to yourself,. Maybe you should go away and reflect upon why you feel the need to be so vitriolic about your sisters. Your statement is flippant, hurtful and reflects very badly on yourself.
eca, London, UK
To be honest, this is the reality... the way the business world operates. It has always been like this and will be like this forever. We are talking about money here.. some serious money.
Bjorn Nobel, Oslo, Norway
So BAE has prostitutes on its books does it to sweeten deals? Well there's a surprise.
Heike, London,
Don't see the problem here I'd bet the French do the same thing
John, Salford, Salford
Oh Boy! This actress (the brunnet) pictured above is quite a delight. I see why the prince couldn't even negotiate a good bargain when faced with this 'hotti'
I don't see anything immoral about having a 'pretty' girl entertain you but I am disturbed by the abuse of authority. BAE systems should be promoting good business ethics.
These girls are so hot that that the prince simply couldn't say NO! Let us not be 'holier than thou' b'coz we might have done the same thing ourselves...
Qadar, London, England
colin from reading .
you missed the point completely . the story is about how the british gov paid bribes to saudi corrupt people in the yamama deal and when some people wanted to investigate this story , blair who wanted to be whiter than whiter in the beginning , stopped the inquiry including mr Goldsmith. that is wrong . if they are honest they should let the inquiry follow its course .
yasmine , Oran , Algeria
So the claim is that BAES threw the Saudis a few parties - nothing more than they'd be used to at home - and then billed them for it, and the result was that thousands (at least) of British workers had and continue to have jobs. This just illustrates the unreality of the NGOs and their friends in the media who expect the world to be perfect and will sacrifice anyone else if it's not. And as for politicians supid enough to think they can pander to these special interests and not have to pay the price... The lesson should be - in future, don't open your mouth until you've worked through all the consequences, Mr Blair!
Orion, London,
Sorry but I don't understand the issue? I went to Brands Hatch yesterday and most of the teams had hired pretty girls to promote their sponsors. Go to a motor show and all the stands have hired 'pretties' to chat up the customers. In fact pretty hostesses are used by most industries. Why was this the main front page news in the Sunday Times, rather than RN Hostages or Gordon the Pension Raider? Frankly it would be more newsworthy if it were discovered that BAE do not use hostesses to promote their equipment.!
Colin , Reading, England
No great deal.
Some years ago, the previous custodian of the two holy mosques (Late King Fahad of Saudi Arabia) paid US$100,000 for a girl for one single night.
Daniel, Kerala, INdia