French multinational defence and electronics company Thales is under investigation by British and French authorities following allegations of corruption and bribery.
On November 21 the Serious Fraud Office (SFO) in the UK announced it launched a probe in co-operation with the French authority Parquet National Financier (PNF).
“We will together rigorously pursue every avenue in our investigation into these serious allegations,” said director of the SFO, Nick Ephgrave QPM.
The SFO gave no further details but in June, authorities raided Thales’ offices in France, the Netherlands and Spain on suspicion of wrongdoing related to arms sales overseas.
French media reported at the time that the ongoing investigation involved possible corruption in military equipment deliveries to Brazil. But according to the Reuters news agency, a source claimed the inquiry was about a suspicious arms contract in Asia.
Another investigation, opened in December 2020, is looking into the transfer of a former employee of the French firm to a position at the United Nations (UN), one of Thales’ clients, French news agency AFP reported.
Defence electronics specialist Thales has produced 650 Lightweight Multirole Missiles (LMMs) for Ukraine. The delivery was announced in September as part of a £162 million (€195 million) purchase agreement with the UK.
Made at one of Thales’ sites in Belfast, Northern Ireland, the lightweight weapons are intended for short-range fire and can strike targets up to about six kilometres away both on the ground and in the air.
The company is headquartered in Paris and has offices in 68 countries, employing 81,000 people. Its subsidiary Thales UK employs more than 7,000 staff in Britain across 16 sites.
In February, Thales also secured a £1.8 billion (€2.2 billion) UK defence deal that will see it maintain the Royal Navy’s submarine and ship fleet for the next 15 years.
The company also produces radar systems, software and sensors used in major military operations, as well as shells, ammunition, satellites and air defence systems.
In the Netherlands, the company makes the scanning devices used by the country’s public transport chip cards.
A Thales spokesperson said in a recent statement to Newsweek: “Thales confirms that the SFO and the PNF have commenced an investigation in relation to four of its entities in France and the UK.”
“Thales is co-operating with the PNF in France and the SFO in the UK. The group complies with all national and international regulations.”
“As the investigation is ongoing, Thales will not comment further.”
The French Government owns 25 per cent of Thales, while Dassault Aviation, an aircraft manufacturer, owns another 25 per cent. The remaining portion of Thales is split up into floating shareholdings.
