£8m deal with Saudi firm linked to secret payments for Prince Miteb

In a revelation that has stirred controversy and raised questions about ethics and governance, the UK Ministry of Defence (MoD) reportedly paid millions to a company alleged to be a conduit for secret payments to high-ranking officials in Saudi Arabia, including a royal family member. The company, Arab Builders for Telecommunications and Security Services (ABTSS), was part of a contract known as Project Arrow, worth £8m and extending until at least 2017.

This development came to light amid efforts to maintain a £1.6bn defence contract for military communications equipment with the Saudis, known as the Sangcom project. The Serious Fraud Office (SFO) had previously been investigating payments made to Prince Miteb bin Abdullah between 2007 and 2010 as part of the same deal.

Prince Miteb, who was the head of the Saudi Arabian National Guard (Sang) at the time, allegedly directed the MoD to enter into the controversial contract with ABTSS in 2014. Despite reservations among senior defence officials regarding ABTSS’s ties to Prince Miteb, the contract was signed in August of that year. The defence secretary during this period was Philip Hammond, now a Lord, who was briefed shortly before a meeting with Prince Miteb.

In 2017, Prince Miteb was among the high-profile figures detained in Riyadh’s Ritz Carlton hotel during what was described as an “anti-corruption” purge by Crown Prince Mohammed bin Salman. He was later released after a reported settlement of $1bn, though the specifics of the allegations against him remain unclear.

The contract with ABTSS surfaced during the trial of business executives Jeffrey Cook and John Mason, who were accused by the SFO of facilitating bribes to officials, including Prince Miteb, under the Sangcom deal. Both Cook and Mason were acquitted, having argued that their actions were approved by the government.

Documents presented in court highlighted the MoD’s efforts to keep the Sangcom deal viable, including the consideration of Project Arrow as a means to resume necessary payments to Saudi officials. The relationship between ABTSS and the Fustok family, known for their longstanding ties to Saudi royals and involvement in facilitating contracts, was a particular point of contention.

The MoD’s engagement with ABTSS and the subsequent revelations have underscored concerns about corruption and the influence of foreign policy gambits on defence contracts. Critics argue that such dealings compromise the integrity of international relations and the principles of transparent governance.

As details of Project Arrow and its implications continue to emerge, the scandal sheds light on the complex web of relationships and agreements that underpin defence contracts and international diplomacy. The UK’s MoD, for its part, faces scrutiny over its decision-making processes and the measures in place to prevent undue influence and corruption in such high-stakes deals.