Sweden eyeing Saab as part of BAE probe - FT

...Republic by the British defence firm, the Financial Times reported on Tuesday.

The probe involved a deal to sell military aircraft to the Czech army, according to the newspaper. The FT said it widened an ongoing investigation by Britain's Serious Fraud Office into corruption claims against BAE.

The British company denies all wrongdoing.

Christer van der Kwast, Sweden's chief corruption prosecutor, was quoted as telling the FT he was conducting preliminary work on Saab's involvement in the Czech deal and would soon decide whether to launch a full inquiry.

"The main issue here concerns BAE Systems, but seeing as Saab is connected to BAE, the problem is if bribes have been paid, whether Saab took any part in it," he said.

The Swedish probe was not been carried out independently, he added, while declining to disclose the other parties involved.

The FT quoted Saab as saying it would co-operate fully with van der Kwast.

"BAE did all the marketing on this deal," the firm said. "But we will do everything we can to answer his questions."

John Neilson, BAE's director of group media relations, reiterated the company's stance that it continued to co-operate fully with the Serious Fraud Office's inquiry.

"The continued reporting of allegations against us represents an attack on the reputation of our company and individuals. The company continues to reject the allegations being made," Neilson said in an e-mailed statement.

"BAE Systems is committed to meeting the highest ethical standards in its dealings with others. We have very strong policies and processes in place which are clearly communicated to our employees and our advisors," he added.

"These policies are subject to a robust assurance process. We accept no compromise of our values." Neilson said the firm was also committed to complying with all anti-corruption laws.

The deal in question -- according to the FT report -- was related to when BAE-Saab won a tender to sell the Czechs 24 new Gripen jets in 2002, but the government cancelled the deal after heavy floods forced it to change its spending plans.

[LONDON/Reuters/Finance.cz]