BAE Systems has parted company with Sir Dick Evans, the defence group’s former chairman and chief executive, only weeks after admitting to compliance failings that took place under his leadership.
Sir Dick had been retained by BAE as an adviser on Saudi Arabia and was paid £246,954 last year.
However, according to BAE’s annual report, published yesterday, his contract was not renewed on February 28.
He was the chief executive of BAE from 1990 to 1998 before stepping up to
become chairman. It was during this period that allegations of bribery and corruption were made against BAE in some of the contracts it was seeking to sign with foreign governments.
These allegations became the subject of investigations by the Serious Fraud Office and the US Department of Justice. BAE said on February 5 that it would plead guilty to one charge of false accounting relating to the 2001 sale of an air traffic control system to Tanzania. It will pay a £30 million fine.
The company has also agreed to pay a $400 million (£270 million) fine for making false statements to the US Government in relation to proposed deals in 2001 to lease Gripen fighter jets to Hungary and the Czech Republic.
On February 17, Ian King, the BAE chief executive, told The Times that the company would continue to employ Sir Dick despite the failings made under his leadership.
This stance appears to have changed 11 days later. BAE’s annual report said: “Sir Richard ceased to be a member of the advisory board upon the expiry of his agreed contractual term on February 28, 2010.”
The company declined to comment further and Sir Dick was unavailable for comment.
BAE’s annual report also reveals that Mr King’s pay package increased by 25 per cent to £2.6 million last year, which includes a base salary of £900,000.
The increase is largely a reflection of his promotion from chief operating officer to chief executive in mid-2008.
Meanwhile, BAE has picked up two more contracts from the Ministry of Defence before the impending shutdown of government for the general election. MBDA, the missile maker that is 37 per cent-owned by BAE, has won a £4 billion contract to supply complex weapons to the MoD. This includes £330 million to immediately supply weapons to Afghanistan, including MBDA’s Fire Shadow — a cruise missile that can “loiter” in an area until a target is acquired.
BAE has also won a £120 million contract to provide maintenance and servicing for the Royal Air Force’s Hawk training aircraft.
The contract wins come on top of two awards worth nearly £450 million for the Royal Navy last week. The company recently lost out on a £2 billion contract to build a range of armoured vehicles for the Army.
Source : Times