London Serious Fraud Office Suspends Probing Into Romanian Frigate Deal

The Romanian anticorruption prosecutors decided on June 15, 2009 to suspend the the “in rem” investigation for bribery allegations in the sale of the frigates “King Ferdinand” and “Queen Mary” from Great Britain to Romania, the anticorruption department said.

The decision was taken after the Serious Fraud Office in London informed the Romanian Anticorruption Department on June 11, 2009 that the investigation on the suspects in the Romanian case is interrupted and that the office reserves the right to open the investigation if additional evidence surfaces.

Following the audit report made by the Romanian Court of Accounts, it was established that the procurement of the two frigates and their refurbishing and modernization by BAE Systems LTd had a high degree of complexity and the program unfolded adequately, anticorruption prosecutors said.

On April 28, 2006, the British authorities asked Romania’s General Prosecutor’s Office for legal assistance in the inquiry into the procurement of British frigates by Romania.

The case was directed to the National Anticorruption Department on May 10, 2006.

On June 8, 2006, a Romanian woman and her British-born husband were arrested in London on charges of receiving proceeds from the selling the two British warships to Romania.

British Barry George, 61, and his Romanian born wife, Georgiana, 41, were arrested after the police searched their home and seized documents.

At the time, George was acting as BAE agent during the frigate deal.

The UK Serious Fraud Office was investigating a “commission” of £7 million (some EUR10 million) paid to BAE, Britain’s largest company in the defense sector.

Sources within the Commerce Ministry said BAE admitted that a commission had been paid, but declined to say who received it.

Barry George had allegedly obtained 1% from the value of the contract, while the remainder of 7% had allegedly gone to unknown people.

Georgiana and Barry George were set free after 24 hours in jail, after the police confiscated £20,000 found in their home.

Romanian investigators also searched the company of Barry George’s family, in Bucharest, on June 9, 2006.

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