RNS Number : 7142G
BAE SYSTEMS PLC
17 May 2011
BAE Systems plc reaches civil settlement with U.S. Department of State in connection with
earlier settlement with U.S. Justice Department
17 May 2011
The Company and the U.S. Department of State have reached a civil settlement in connection with violations of the US defence export control regulations that were the subject of the company's earlier settlement with the United States Justice Department, announced by the Company on 5(th) February 2010.
Under the agreement with the Department of State, the Company will pay a fine of up to $79m in respect of alleged civil violations. The fine will be payable over a period of three years, subject to a reduction of up to $10m in respect of the cost of enhanced export control compliance measures already implemented by the company and planned for implementation during the four-year period. In addition, a limited number of the company's UK-originated export programmes will be subjected to enhanced administrative review, which is not expected to adversely impact the company's current or future export programmes. The Company will also make additional commitments concerning its ongoing compliance.
Chairman Dick Olver commented:
"Last year the Company reached a settlement with the U.S. Department of Justice concerning historical violations of U.S. defence export control regulations and this settlement with the State Department arises in connection with its parallel civil jurisdiction over such matters. The Company is grateful to the State Department for the time and effort its staff have invested over the last year in reviewing the company's present compliance systems and processes, which enabled them to conclude that the Company has initiated appropriate steps to address the cause of the past civil violations and to mitigate any law enforcement concerns.
The Company looks forward to working with the State Department to ensure that it continues to make progress towards achieving its goal as being as widely recognised for responsible conduct as it is for high quality products and advanced technologies."
BAE Systems plc
This information is provided by RNS
The company news service from the London Stock Exchange