British defense contractor under fraud investigation over suspected corruption in Algeria

The SFO investigates and prosecutes serious or complex fraud, bribery and corruption. (Photo courtesy: SFO)
Updated 19 April 2018
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British defense contractor under fraud investigation over suspected corruption in Algeria

  • Ultra said in a statement that it had referred itself to the British fraud authorities and that the SFO investigation concerned the business conduct of Ultra, its subsidiaries, employees and associated persons
  • The SFO’s investigation into Ultra, which makes military electronics for land, air and sea forces, follows probes into other British companies operating in the defense sector including Rolls-Royce and BAE Systems

LONDON: Ultra Electronics on Thursday announced that the UK’s Serious Fraud Office had opened a criminal investigation into “suspected corruption in the conduct of business” by the British defense contractor in Algeria.
Ultra said in a statement that it had referred itself to the British fraud authorities and that the SFO investigation concerned the business conduct of Ultra, its subsidiaries, employees and associated persons.
“Given the stage of these matters, it is not possible to estimate reliably what effect the outcome of this matter may have on the group,” Ultra said, adding that it continued to co-operate with the SFO.
The SFO in a statement said it was looking into Ultra but said it could not provide additional information as the investigation “is live.”
Ultra shares were down 6 percent in early trade.
The SFO’s investigation into Ultra, which makes military electronics for land, air and sea forces, follows probes into other British companies operating in the defense sector including Rolls-Royce and BAE Systems.
Ultra Electronics’s biggest market is North America with just 17 percent of its revenue coming from what it calls “rest of the world.” It does not mention Algeria in its annual report.
Ultra, which last month abandoned a bid for US company Sparton Corp. due to anti-trust concerns, is currently without a chief executive.
Douglas Caster assumed the role of executive chairman last year after the previous CEO quit. New CEO Simon Pryce is due to join in June.
The SFO has been criticized by lawmakers in the past over its efforts to bring companies and senior individuals to book. More recently it has secured deferred prosecution agreements with Rolls-Royce and Tesco and filed unprecedented criminal charges against Barclays and former senior executives.


Iran faces ‘strongest sanctions in history’

US Secretary of State Mike Pompeo (AP Photo/Alex Brandon)
Updated 22 May 2018
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Iran faces ‘strongest sanctions in history’

  • US Secretary of State laid out Trump administration’s strategy for constraining Iran’s nuclear program
  • US threatens "strongest sanctions in history" if Iranian government does not change course

WASHINGTON: The US told Iran on Monday to drop its nuclear ambitions and pull out of the Syrian civil war in a list of demands that marked a new hard-line against Tehran and prompted an Iranian official to warn that Washington seeks regime change.

Weeks after US President Donald Trump pulled out of an international nuclear deal with Iran, his administration threatened to impose “the strongest sanctions in history,” setting Washington and Tehran on a deeper course of confrontation.

US Secretary of State Mike Pompeo demanded sweeping changes that would force Iran effectively to reverse years of its foreign policies.

“The sting of sanctions will only grow more painful if the regime does not change course from the unacceptable and unproductive path it has chosen for itself and the people of Iran,” Pompeo said in his first major speech since becoming secretary of state.

“These will be the strongest sanctions in history by the time we are done,” he added.

Pompeo took aim at Iran’s policy of expanding its influence in the Middle East through support for proxy armed groups in countries such as Syria, Lebanon and Yemen.

He warned that the US would “crush” Iranian operatives and allies abroad and told Tehran to pull out forces under its command from the Syrian civil war where they back President Bashar Assad.

Iran is unlikely to accede to the US demands. Tension between the two countries has grown notably since Trump this month withdrew from the 2015 nuclear agreement aimed at preventing Tehran from obtaining a nuclear weapon.

Pompeo warned that if Iran fully resumed its nuclear program Washington would be ready to respond and said the administration would hold companies doing prohibited business in Iran to account.

“Our demands on Iran are not unreasonable: Give up your program,” Pompeo said, “Should they choose to go back, should they begin to enrich, we are fully prepared to respond to that as well,” he said, declining to elaborate.

Pompeo said if Iran made major changes, the US was prepared to ease sanctions, re-establish full diplomatic and commercial relations and support the country’s re-integration into the international economic system.

The speech did not explicitly call for regime change but Pompeo repeatedly urged the Iranian people not to put up with their leaders, specifically naming President Hassan Rouhani and Foreign Minister Mohammad Javad Zarif.

“At the end of the day the Iranian people will get to make a choice about their leadership. If they make the decision quickly, that would be wonderful, if they choose not to do so we will stay hard at this until we achieve the outcomes I set forward,” said Pompeo.