Tuesday, March 20, 2007
British companies accused of fraud in Iraq deal
Business
(The Guardian) Three British companies are facing accusations that they engaged in large-scale fraud in Iraq after it emerged they were paid for "phantom" armoured vehicles destined to protect Iraqi government employees. The vehicles were never delivered, but the companies were paid anyway. One company, headed by a former deputy assistant commissioner at Scotland Yard and a colourful ex-army officer, received $5.7m (£2.93m), even though the vehicles never left the factory in Russia where they were due to be manufactured.
This is the first time that British companies have been accused of involvement in the widespread fraud which flourished in the chaos following the 2003 invasion. Allegations against the three British companies are known to be detailed in a confidential statement which was lodged with a court in New York earlier this month. In London, meanwhile, officials from the Serious Fraud Office are also examining documents relating to the deal. Whilst the SFO has not yet opened a formal investigation, if it were to do so it would be the first of its kind into allegations of British involvement in fraud in Iraq.
The deal under suspicion was negotiated in late 2004, when Iraq was still governed by the Coalition Provisional Authority (CPA). Amid the growing threat from insurgents against civilian employees working for government ministries, the CPA put out a tender for a fleet of armoured vehicles. Many were bomb-proof trucks and coaches which were intended to protect civil servants from attack as they were being bussed to and from work. A total of 51 vehicles was included in the final tender, including crowd control vehicles, command vehicles, water cannons and armoured buses. The money to pay for the contract came from Iraqi oil revenues held by the Trade Bank of Iraq, but under the control of US officials.
The contract, worth $8.48m, was won by Zeroline, a Norfolk-based armoured car company run by ex-soldier Peter Tarrant. He subcontracted the sourcing of the vehicles to another British company called APTx, a subsidiary of Alchemie Technology Ltd. Alchemie and APTx were formed soon after the invasion of Iraq by Haslen Back, a former junior officer in the Royal Anglian Regiment. The chairman of APTx is Graham James, a former deputy assistant commissioner of Scotland Yard.
This is the first time that British companies have been accused of involvement in the widespread fraud which flourished in the chaos following the 2003 invasion. Allegations against the three British companies are known to be detailed in a confidential statement which was lodged with a court in New York earlier this month. In London, meanwhile, officials from the Serious Fraud Office are also examining documents relating to the deal. Whilst the SFO has not yet opened a formal investigation, if it were to do so it would be the first of its kind into allegations of British involvement in fraud in Iraq.
The deal under suspicion was negotiated in late 2004, when Iraq was still governed by the Coalition Provisional Authority (CPA). Amid the growing threat from insurgents against civilian employees working for government ministries, the CPA put out a tender for a fleet of armoured vehicles. Many were bomb-proof trucks and coaches which were intended to protect civil servants from attack as they were being bussed to and from work. A total of 51 vehicles was included in the final tender, including crowd control vehicles, command vehicles, water cannons and armoured buses. The money to pay for the contract came from Iraqi oil revenues held by the Trade Bank of Iraq, but under the control of US officials.
The contract, worth $8.48m, was won by Zeroline, a Norfolk-based armoured car company run by ex-soldier Peter Tarrant. He subcontracted the sourcing of the vehicles to another British company called APTx, a subsidiary of Alchemie Technology Ltd. Alchemie and APTx were formed soon after the invasion of Iraq by Haslen Back, a former junior officer in the Royal Anglian Regiment. The chairman of APTx is Graham James, a former deputy assistant commissioner of Scotland Yard.
Labels: Alchemie Technology Ltd., APTx, armored vehicles, British companies, fraud, Graham James, Haslen Back, Peter Tarrant, tender, Zeroline
