12 Dec 2006 | Ref. 379/2006
The Directorate of Defense Trade Controls (DDTC) apparently has agreed to accept a mea culpa from BAE Systems and not take any enforcement action against the firm for its failure to get State approval for its sale of a majority interest in its stock to Finmeccanica SpA.
In a Dec. 8 posting on its website, DDTC said it conducted an extensive review of the stock sale. “As a result of that review, DTCC has received written acknowledgment from BAE Systems that it did not request prior authorization from the Department of State for the sale of stock in SELEX to Finmeccanica,” the agency noted. “BAE understands that this authorization should have been obtained to address those Department of State licenses and agreements (active and expired) to which BAE Systems Avionics was a party,” DDTC said.
“BAE Systems has assured DTCC that it will obtain prior authorization for an intended resale, transfer or disposal affecting ITAR-controlled defense articles/services or seek guidance from the Department on legal and regulatory responsibilities,” it continued BEA agreed to update its internal compliance policies and provided DDTC with evidence that it has proper safeguards in place to protect defense technology and technical data.
About BAE Systems:
BAE Systems is the premier transatlantic defence and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With 88,000 employees worldwide, BAE Systems' sales exceeded 12 billion pounds (US22 billion dollars) in 2005, excluding the Group's former interest in Airbus.
For further information please contact:
John Neilson, BAE Systems
Tel: +44 (0) 1276 38417 Mob: +44 (0) 7802 337704
john.neilson@baesystems.com
Lisa Hillary-Tee, BAE Systems
Tel: +44 (0) 1252 384934 Mob: +44 (0) 7801 718994
lisa.hillary-tee@baesystems.com
Issued by:
BAE Systems, Farnborough, Hampshire GU14 6YU, UK
Tel: +44 (0) 1252 384719 Fax: +44 (0) 1252 383947
www.baesystems.com
