George Osborne has a secret veto over large and potentially politically sensitive fraud investigations, The Independent has learnt.
George Osborne who has supported companies affected by 'corrupt' factoring company
Under a government agreement the Serious Fraud Office must
get permission from the Treasury to launch any complex new inquiry which
comes on top of its normal budget.George Osborne who has supported companies affected by 'corrupt' factoring companyBut controversially the Treasury can keep its decisions secret – potentially allowing it to veto politically sensitive fraud inquiries, either before or midway through an investigation, without public scrutiny.
Ministers have now become the final arbiters of which major financial crimes are investigated as a result of 25 per cent cuts to the SFO’s budget over the past three years, Labour warned.
The move is particularly sensitive as the Government has intervened in the past to halt embarrassing fraud investigations.
In 2006 the then Attorney General Lord Goldsmith announced that an SFO investigation into claims that BAE Systems had paid bribes to secure an arms deal with Saudi Arabia was being dropped. The announcement came weeks after reports that the Saudis were threatening to pull out of a deal to buy 72 Eurofighter jets from BAE.
Critics warned that the Government could use the veto to prevent investigations into alleged fraud at RBS in the run-up to the financial crisis – which have the potential to cost the Government millions in compensation.
Continue reading: http://www.independent.co.uk/news/uk/politics/revealed-george-osbornes-secret-veto-on-fraud-inquiries-8585215.html
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