Almost one year ago, on March 4, 2010, this blog reported that the Directorate of Defense Trade Controls (“DDTC”) had posted a website notice that all BAE export licenses were on temporary hold. This came several days after BAE had pleaded guilty to charges that it had paid bribes in violation of the Foreign Corrupt Practices Act and failed to report them as commissions in violation of the Arms Export Control Act. DDTC said the hold was to allow the agency to consider the impact of BAE’s guilty plea. And then, almost as quickly as the notice appeared — poof! — it was gone.
Well, the DDTC has apparently meditated on the fate of BAE long enough. An article in today’s Financial Times reported that BAE is bracing itself to have DDTC impose additional fines on the company and to suspend BAE’s privilege to export defense articles. Given BAE’s participation in such multilateral defense projects as the Joint Strike Fighter, it seems unlikely that the DDTC will impose a total export ban on BAE, but some version of an export ban is, apparently, both likely and imminent.
According to the Financial Times, the State Department was keeping mum on the matter but a BAE spokesperson had this to say: “Dialogue continues and is progressing with the Department of State in order to address its concerns regarding matters arising from the [Department of Justice] settlement.â€