Clegg Heads Calls to Reopen BAE Saudi Arms Probe

6.55.26pm BST (GMT +0100) Sat 12th Apr 2008

The High Court has ruled that the SFO acted unlawfully by dropping the the corruption inquiry into the BAE deal

The Serious Fraud Office (SFO) has been urged to reopen its inquiry into a £43bn BAE arms deal with Saudi Arabia. Liberal Democrat leader Nick Clegg said the investigation, which was suspended in 2006, must be allowed to continue.

The High Court ruled that the SFO acted unlawfully by dropping the corruption inquiry into the al-Yamamah deal. BAE maintains it acted lawfully. In a statement the SFO said it was "carefully considering the implications of the judgement and the way forward". BBC News political correspondent James Hardy said it remained possible that the High Court would tell the SFO to reactivate the inquiry.

Lib Dem leader Nick Clegg states "First, the fraud office needs to now proceed with the original investigation which was suspended. Second, I think we do want an independent inquiry into the way in which political pressure, inappropriately in my view, was brought to bear on the director of the Serious Fraud Office."