UK Government and SFO quietly let slip Kenyan crooks, offshore bank / tax havens with a scribbled note in the House of Lords

Yesterday Baroness Northover(Liberal Democrats Spokesperson on International Development in the House of Lords) received a written answer from The Attorney-General (Baroness Scotland of Asthal) to the question she raised further to the Written Answer by the Solicitor General, Vera Baird, on 11th February (Official Report, House of Commons, col. 1990W), why the investigation into Anglo Leasing was terminated in January 2009. [HL1591]See BBC report

The glass twiddling, scarf adjusting smug lawyer lost the opportunity to look smug,to twiddle and adjust and provided a terse (and unhelpful) written answer:

The director of the Serious Fraud Office exercised his discretion to terminate the investigation because there was no reasonable prospect of a conviction without evidence being obtained from Kenya.

If evidence is received from Kenya in the future, the director will consider reopening the investigation.

A detailed and fiull report on thism ulti million pound scandal (with associated scams in total some US$250mn) can be read at Wiki

Briefly in 2002, Sophisticated passport equipment system was sourced from France and forensic science laboratories for the police were sourced from Britain. The transaction was originally quoted at 6 million euros from a French firm, but was awarded to a British firm, Anglo Leasing Finance, at 30 million euros, who would have sub-contracted the same French firm to do the work.

The tender was not publicly advertised, and its details were leaked to the media by a junior civil servant. The Anglo-Leasing sales agent was Sudha Ruparell, a 48 year old woman who is the daughter of Chamanlal Kamani and sister of Rashmikant Chamanlal Kamani & Deepak Kamani. The Kamani family has been involved in various security supplies scandals in the past.

United Kingdom's Serious Fraud Office began to examine Anglo Leasing's affairs in July 2007 especially relating to offshore accounts in the British tax havens of Jersey and Guernsey, which were used to transfer more than $30m to a company called Apex Finance between April 2002 and February 2004.

Although the firm was not registered in Britain, the original contract was signed by a UK accountant, Colin Flynn, and gave an address in an elegant Victorian house near Liverpool city centre. This, it transpired, was the offices of a small property company, Saagar Associates. Saagar claimed it was simply acting as UK agent for Anglo Leasing which was based in Switzerland.

Saagar's owner was Mrs Ruparell sister of Deepak Kamani who at the time lived in Barnet London.

Mr Flynn, a father of three who lives in a modest semi-detached house in the suburb of West Derby in Liverpool, has declined to comment.

Another fascinating UK company is LBA Systems of Fife and Daventry, which specialises in body armour and has been owned and run by Andrew Macgill since 1975. LBA has two contracts with Kenya for the supply of four M17 helicopters to the police and a communications system to the prison department. The Guardian discovered that in September 1994 Mr Macgill married a Russian woman, Ludmila Kalushenko. Her maiden name appeared on the Anglo Leasing CID contract in 2001.

So this is how HMG - anxious developers of the third world accordingto Gormless Gordon quietly bury funds that have been stolen from Kenyan citizens with the aid of UK entities and citizens usingof shore accounts (and ank accounts) - absolves itself from any responsibility.

Guradian today .. "Gordon Brown yesterday promised that Britain would keep its pledge to raise its overseas development aid budget to an internationally agreed target of 0.7% of national income in spite of the growing budget deficit."

British Airways / Virgin price fixing - not out of the woods yet

Jeff Randall in today's Daily Telegraph has a typically entertaining view on the corporate shenanigans at British Airways, which resulted in a couple of corporates being thrown off the sleigh this week. He points out that the airlines' fuel surcharges – which are at the heart of US and UK regulators' concerns – had begun to be imposed (almost simultaneously) by BA and Virgin Atlantic in May 2004, long before the sainted Sir Rod Eddington left the business.

"Burns looks like the fall guy." says Mr Randall, "Even if Burns did make a compromising call to Virgin, a tape of which is rumoured to be at the centre of civil and criminal investigations, does anyone really believe that a £75,000-a-year PR man, who spent much of his time organising press jolly-ups, masterminded an alleged multi-million-dollar price-fixing campaign on his own initiative?"

" ...let's not forget that if BA was involved in a conspiracy, it could not conspire on its own."

Three other airlines – American, United and Virgin Atlantic – are being investigated for possible misdemeanours in the passenger market, and no fewer than 15 carriers have been named by the inquiry into the cargo market."

Perhaps whilst all this rather unfortunate washing of linen carries on, might it not be a good time for Mr O'Leary, against whom there is not the slightest whiff of attempting to rig prices or fare structures to get approval for his audacious raid on Aer Lingus ? On April 19th this year Ryanair has reiterated its commitment to low fares by guaranteeing not to introduce fuel surcharges .

Michael O'Leary, accused BA of "gouging passengers" by passing on the cost, pointing out that the latest increase was the 7th fuel surcharge the airline had introduced.

The cocky little Irishman pointed out that the £35 surcharge for a one-way trip is more than Ryanair's average total fare of £28, he added.

"Yet again British Airways go for the soft option," said Ryan at the time. "Over the past two years as oil prices have doubled from $35 to $70 a barrel, British Airways' fuel surcharges have increased fourteen-fold from £2.50 per sector to £35 per sector."

Price fixing is not a victimless crime, nor does it go unpunished - Alfred Taubman, the owner of Sotheby's set up up a cartel with rival auction house, Christie's. He was fined $7m in 2002 and jailed for a year.

After the extradition to the US of the spotless Nat West 3 there might be a few sweaty palms in the airline boardrooms.

CURIOUS COUNCIDENCE ?

On Tuesday British Airways World Cargo (BWAC) announced a reduction in its fuel surcharge. The surcharge will be GBP 0.34kg, US$ 0.50kg, €0.50kg, with effect from 19 October, 2006. Chris Bosworth, general manager commercial development said: "This is the second drop in the fuel surcharge level in as many weeks."