Monster BAE profits

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Who cares about corruption allegations? British defence and aerospace company BAE Systems has reported a higher than expected 19 per cent rise in first half profits, driven largely by its expansion into the US.

A little matter of endless war in Iraq and conflict in Afghanistan have also boosted its profits. No wonder the analysts are excited.

BAE is facing accusations of paying bribes to secure orders from saudi arabia and an investigation by the UK Serious Fraud Office was halted in 2006 by the Blair Government. The US Department of Justice is now investigating.

Notwithstanding the allegations, investigations and the way the company makes its money, BAE chief executive Mike Turner insisted BAE had "a very strong ethical culture". Hate to see what he'd call "unethical".

He also said the Department of Justice investigation had not affected the company's operations in the US. Well, no surprises there. Given that the UK is America's ally, it's hard to see the US government punishing BAE North America for alleged crimes by its British parent.


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