Otto Jelinek and BAE Systems

Case Control Number: 
17
Description : 

According to The Guardian, the bribery revolves around a £400m Anglo-Swedish deal in 2004 in which the Czech Republic leased Saab Gripen fighter planes from BAE. BAE allegedly routed bribes to Czech officials through Count Alfons Mensdorff-Pouilly, an Austrian aristocrat who worked covertly for BAE. Secret payments from BAE of more than £4m were identified according to documents obtained by a Swedish source, which alleged the money was to be used to pay bribes. Three agents Otto Jelinek, a former state finance minister in Canada who had returned home to Prague as a businessman; Richard Hava, head of the state arms firm Omnipol; and Count Alfons Mensdorff-Pouilly, who was the husband of an Austrian politician and had a chequered past, were promised bribes and had links to the Czech political establishment.

A series of offshore companies were named. Hava was allegedly promised 2% commission through an entity called Gabstar. Jelinek allegedly used a Bahamian entity called Fidra Holdings. Mensdorff-Pouilly allegedly received £4m through the most multi-layered arrangements: BAE allegedly paid intermediary arms dealer Brigadier Tim Landon through his Swiss-based, Panama-registered entity Valurex. Landon in turn allegedly employed Mensdorff-Pouilly to lobby in Prague. BAE's sales campaign was allegedly masterminded by ex-MOD official Julian Scopes and country director Steve Mead.

Type of Illicit activity involving Public Official : 

Bribes

Impediments to investigation: 

Unk

Most recent legal action against Public Official?: 

None

Other legal action/ other prosecutions: 

None

Region: 
Hi-Income
Country of Public Official: 
Sources: 
Leigh, David and Rob Evans. “The BAE Files, Country Profile: Czech Republic.” The Guardian, June 7, 2007, accessed at http://www.guardian.co.uk/world/2007/jun/07/bae23
Position of Public Official during scheme: 
Otto Jelinek/former state finance minister in Canada; Richard Hava/head of the state arms firm Omnipol
Is there a pending case or appeals?: 
Unk
UNCAC Articles(s) Implicated: 
Money laundering Implicated?: 
Yes
Year scheme began: 
2012

Corporate Vihecles Used