Dahdaleh lawyer said Bahrain government 'could influence case'

A lawyer for a defendant in a high-profile corruption case suggested the Bahraini government could influence the outcome of a UK criminal investigation citing the 2006 cancellation of the BAE Systems probe, it was claimed in a London court.

Qays Zu'Bi, a Bahraini lawyer for Victor Dahdaleh - who is accused by the UK Serious Fraud Office of eight counts of conspiracy, corruption and money-laundering - told an April meeting in the Bahraini capital Manama, which was attended by the country's deputy prime minister and board members of Alba, the Bahraini state-owned aluminium producer, that Alba was under no compulsion to assist the SFO in its probe of Mr Dahdaleh.

Mr Dahdaleh was due to stand trial less than a week after the meeting, Southwark Crown Court heard on Thursday.

According to Mahmood Al-Kooheji, Alba's current chairman and an official at the Gulf state's ministry of finance, Mr Zu'Bi said "there was another case that the SFO had been investigating, and that government made some political interference and the case was suspended. He was referring to the BAE case. He suggested that Bahrain could interfere in this case; to politically interfere in the SFO investigation,"

Mr Al-Kooheji added, "He said if the case continued, names of the royal family would be exposed in this investigation and that would be an embarrassment for the Bahrain government."

Mr Kooheji is a witness for the SFO in the case, which accuses Mr Dahdaleh of paying £38m to Sheikh Isa bin Ali al-Khalifa, Alba's former chairman and a senior member of Bahrain's ruling family, to win $3bn of contracts for companies Mr Dahdaleh represented, including Alcoa, the US aluminium company. Mr Dahdaleh denies the charges.

Mr Kooheji told the court on Thursday that the Bahraini deputy prime minister responded to Mr Zu'Bi's claim by saying Bahrain would not interfere in a criminal case being conducted in the UK.

In 2006, Downing Street cited national security when it cancelled an SFO investigation of alleged corruption at BAE Systems over payments related to a contract with Saudi Arabia.

The court has already heard that Mr Dahdaleh's trial was postponed from April until this month after Mr Kooheji alleged he had been "intimidated" by Mr Zu'Bi and by Mr Dahdaleh's UK lawyers from Allen & Overy, the City firm.

Mr Dahdaleh, Mr Zu'Bi and two A&O lawyers attended a London meeting with Mr Kooheji two days after the Manama meeting, in spite of Mr Dahdaleh's bail conditions, which stipulated he was to have no contact - either direct or indirect - with witnesses in the case.

Mr Kooheji told the court he was "shocked" to see Mr Dahdaleh at the London meeting, because he and his lawyers from Akin Gump were under the impression they would be discussing the possible settlement of a US civil lawsuit between Alcoa and Alba.

Mr Kooheji said that one A&O lawyer, in a "very, very intimidating" tone, insisted that Mr Kooheji knew that payments between Mr Dahdaleh and the sheikh were approved.

Mr Dahdaleh's barrister began to cross-examine Mr Kooheji about the influence of the Bahraini government on Alba's day-to-day workings.

Ακολουθήστε το Euro2day.gr στο Google News!Παρακολουθήστε τις εξελίξεις με την υπογραφη εγκυρότητας του Euro2day.gr

FOLLOW USΑκολουθήστε τη σελίδα του Euro2day.gr στο Linkedin

A key defence against the corruption charges Mr Dahdaleh faces is to demonstrate "principal's consent" - in this case that either the government of Bahrain or Alba board members knew about the payments.

Sheikh Isa is named as a co-conspirator on the SFO's indictment against Mr Dahdaleh, but is not involved in proceedings because there is no extradition treaty between the two countries, the court has heard.

Mr Zu'Bi is also absent from proceedings in which Bruce Hall, Alba's former chief executive, has already pleaded guilty and given evidence.

The trial continues.

© The Financial Times Limited 2013. All rights reserved.
FT and Financial Times are trademarks of the Financial Times Ltd.
Not to be redistributed, copied or modified in any way.
Euro2day.gr is solely responsible for providing this translation and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation