Michael Evans, Defence Editor
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A senior official at the Ministry of Defence bought himself a luxury villa in Spain after taking more than £217,000 in payments to ensure that an American company won a lucrative contract.
Michael Hale, 58, who was in charge of contracts for gas supplies and equipment, received nine payments over four years, Southwark Crown Court was told. He was given concurrent sentences of two years on each corruption charge.
Pacific Consolidated Industries, which is based in California, was awarded a £4.5 million contract by the MoD to supply the British Armed Forces with gas containers after Hale had provided vital information.
Hale used the £217,766 to buy a five-bedroom villa with a swimming pool in Benidorm and also bought two houses in Cambridgeshire.
Christopher Donnellan, for the prosecution, said: “Here was an example of creeping corruption which started with some over-the-top and unsigned-for hospitality and graduated from small and then to substantial corrupt payments.”
The court was told that Hale, from Ramsey in Cambridgeshire, enjoyed lavish hospitality from the company. Lee Smith, the company’s vice-president, paid for Hale and his wife to fly to the United States, put them up in luxury hotels and entertained them on his yacht.
The first of the payments were made in dollars, using his stepson’s bank accounts. The second payments were made to an account in Spain for the purchase of the villa.
The court was told that the information Hale supplied included the amount allocated for the gas equipment, and the specifications of the kit ordered in previous years. This put other companies bidding for the contract at a disadvantage.
Mr Donnellan said: “It is right to say, though, that there was no danger that the equipment supplied was sub-standard and that lives were at risk.”
Hale was arrested after auditors noticed suspicious accounting after a takeover of the company. He denied the charges, claiming the payments were legitimate in return for some consultancy work.
When suspicion fell on his wife, Janice, and stepson Mark Brown, Hale finally confessed.
The court was told that he had an impeccable record during a “distinguished career”.
Hale pleaded guilty to the nine corruption charges that covered a period between November 1999 and July 2003.
Judge Christopher Elwen said that it was a message to those in public office that corruption would not be tolerated.
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This shows that senior civil servants are not whiter than white.
John R Jones, Preston,
Bribery and corruption is the way of the world in much of the world, and if UK and US firms must engage in it to compete, so be it. But the UK is most certainly not one of these countries. Hopefully both our U.S. Justice Department and UK authorities can find that laws are already in place to recapture all monies paid, and prosecute those responsible to the fullest.
Unfortunately, "the fullest" is very little in the UK, where the punishment of Mr. Hale will hardly serve as a deterent, and the amount of money he made from his crime will amount to a tidy sum for the pitiful amount of time he will have to serve.
Finally, before anyone out there starts to wail and moan about the Bush Administration, they should check the political contributions of Pacific Consolidated Industries. Every rotten penny went to Democrats. Republicans got nothing, except the headache.
Bob Evans, Anaheim, California
Pays to be corrupt then.....
Wonder how the rest of 'the boys' are doing...?
Dave, Groningen, Netherlands
Will he now be allowed to sell his story?...oops let's not go there.
Kirk, Rotherham, UK
Did he get to keep the villas and the other houses and any tax problems arising? the report falls short.
So when will he be out...6 months for good behaviour?
and what happened to the US company --under the Foreign Corrupt Practices Act--?
must be more to this story...
Toni, Santa Barbara, CA