Summary
Highlights
The video opens with an introduction to the vast and concealed world of international bribery, highlighting the trillion-dollar scale of the issue. It focuses on an international crackdown and a pivotal case involving BAE Systems. In May 2008, the CEO of BAE Systems was detained by the US Justice Department upon arrival in Houston, indicating a serious investigation into the company's practices.
The narrative shifts to the Al-Yamamah arms deal, an 80-billion-dollar agreement between BAE, the UK, and Saudi Arabia, brokered by Prince Bandar. The deal, designed to provide fighter jets for the Saudi Air Force, was strategically arranged through the British to avoid US congressional opposition due to the Israel Lobby. This secretive deal, paid for in oil (cash), raised long-standing suspicions of corruption within the Saudi royal family.
Peter Gardner, a high-end travel agent for Prince Turkey bin Nasser (Prince Bandar's cousin and administrator of the Al-Yamamah contract), provides an inside look at the extravagant lifestyle of Saudi officials, all paid for by BAE. Gardner details chartering jets for cars, lavish shopping sprees, and even Prince Bandar's daughter's two-month honeymoon, all invoiced to BAE. This demonstrated a clear 'slush fund' arrangement.
The historical context of anti-bribery laws is explored, tracing back to the Watergate scandal in the US. Revelations of illegal cash payments to Nixon's re-election campaign led Stanley Sporkin of the SEC to discover widespread corporate bribery overseas, which was not illegal at the time. This ultimately led to the passing of the Foreign Corrupt Practices Act (FCPA) in 1977, making it illegal for US companies to bribe foreign officials.
Despite the FCPA, companies continued to bribe, leading the US to push for international cooperation. In the 1990s, the OECD passed the Anti-Bribery Convention, criminalizing international bribery for signatory countries. However, companies like Siemens adapted by using secret bank accounts and front companies to continue their bribery practices, as revealed by former Siemens manager Reinhard Siekac.
After Britain adopted its own anti-bribery laws, Peter Gardner came forward with documents to British investigative journalist David Leigh, exposing BAE's lavish payments. The Serious Fraud Office (SFO) launched an investigation, uncovering not only Gardner's claims but also billions of dollars in payments to Swiss bank accounts possibly linked to Prince Bandar's father. However, the investigation faced immense political pressure, culminating in Prime Minister Tony Blair stopping it due to alleged threats of Saudi non-cooperation on terrorism and economic repercussions.
Despite the controversial halt of the British investigation, the US Justice Department continued its commitment to enforcing anti-bribery laws. Mark Mendelsohn, chief prosecutor for international bribery, highlights numerous ongoing cases and substantial fines collected. The US also pursued cases against companies like Siemens due to their stock being traded in the US. The documentary reveals that the US has its own investigation into BAE, leveraging the fact that much of the lavish spending occurred in the US and the $2 billion transferred to Prince Bandar's accounts in Washington. Prince Bandar's lawyer, Louis Free, attempts to justify the payments as legitimate government expenditures, but the US authorities maintain that personal benefit from and corrupt purpose of payments are key.
The documentary concludes by questioning the efficacy of anti-bribery conventions and laws when confronted with powerful interests and political pressure. It highlights the dichotomy of rules for the powerful versus others and the enduring nature of 'black money.' There is a belief that while laws may make bribery more cunning, the habit of secret payments by multinational companies will eventually have to change. Prince Bandar's 2001 interview is included, where he defiantly acknowledges the existence of corruption but questions who has the right to judge, stating Saudi Arabia did not invent it.