LONDON (AFP) - Britain is likely to bring in new anti-corruption laws in the wake of bribery allegations against the country's largest arms manufacturer, Solicitor General Vera Baird told parliament.
Baird told the House of Commons, Britain's lower parliamentary chamber, that a process had been under way for some time to improve the relevant legislation.
This followed accusations levelled at BAE Systems over its massive 1985 deal to provide fighter jets to Saudi Arabia.
It was not the case that existing legislation could not be applied, she said: "But it must be improved on and it will be," she added.
BAE's deal was the subject of a Serious Fraud Office probe after claims the company set up a secret 60-million-pound (120-million-dollar, 90-million-euro) slush fund for Saudi royals to ensure future business.
The investigation was shelved last December, triggering a wave of protest from both opposition and some Labour deputies.
The then attorney general Peter Goldsmith said the decision had been taken on national and international security grounds.
The US Department of Justice has since issued Britain with a formal request for assistance in their own investigation. BAE is accused of having paid a one-billion pound bribe to the then Saudi ambassador to Washington.
Prince Bandar bin Sultan has denied having received any improper payments. He insisted that any payments were made with the express approval of both the British and Saudi governments and went to Saudi Arabia. BAE also denies any wrongdoing.
BAE is currently seeking to expand its US presence through a 4.5-billion-dollar deal to buy Armor Holdings Inc., which supplies armoured vehicles to the US military in Iraq among other equipment.
British investigators are still probing BAE contracts in Africa, eastern Europe and South America.