Qatari Bribery Scandal Brings Down American Defense Industry Giant
Raytheon's involvement in the Qatari bribery scandal highlights the urgent need to strengthen international oversight of arms deals, especially in geopolitically sensitive regions
October 17, 2024, 8:55 pm

Qatari Bribery Scandal Brings Down American Defense Industry Giant

قطر والرشاوى \ تعبيرية

Recent investigations have revealed the involvement of Raytheon, a subsidiary of the American aerospace and defense group RTX, in a widespread corruption scandal involving bribery payments in Qatar. As a result, the company has agreed to pay a fine exceeding $950 million to settle charges of fraud, corruption, and violation of arms laws.

In a controversial statement, Kevin Driscoll, a senior official at the U.S. Department of Justice, indicated that Raytheon was "involved in fraudulent operations to deceive the U.S. government in contracts related to sensitive military systems and to win contracts through bribery in Qatar."

The charges against Raytheon centered around the creation of "phantom contracts" with a supplier in Qatar, primarily aimed at paying bribes to secure lucrative contracts with Qatari defense agencies. These illegal practices included the supply of advanced weapons and services, including Patriot missile systems and sensitive radar systems.

Investigations revealed that these suspicious activities spanned a decade, from 2009 to 2020, with a particular focus on the period between 2012 and 2016. During this time, Raytheon succeeded in concealing its illicit activities from American and international oversight.

U.S. authorities highlighted the severity of these practices, noting that they not only resulted in financial losses but also extended to threatening "the national security of the United States and its allies." This statement sheds light on the strategic dimensions of the case, especially given the geopolitical importance of the Gulf region.

As part of the settlement, Raytheon agreed to appoint an independent monitor and enhance internal compliance programs. Additionally, they committed to reporting any future fraudulent behavior and cooperating in ongoing and future investigations, aiming to ensure that such corrupt practices are not repeated in the future.

This case raises serious questions about the mechanisms for monitoring international arms deals, especially in strategically sensitive regions like Qatar and the Arabian Gulf. It also highlights the need to enhance transparency in the global defense industry sector and develop more effective mechanisms to prevent the exploitation of foreign influence in military contracts.

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has announced its sponsorship of the “Innovation and Sustainable Technology Solutions Competition (GU - IST Solutions), hosted by Gulf University at its main campus.
This strategic sponsorship reflects BENEFIT’s active role in advancing technological innovation and fostering sustainable solutions to future challenges. It also seeks to empower Bahraini youth by enhancing their skills, capabilities, and competitiveness in innovation and solution development—contributing meaningfully to the broader goals of sustainable development across all sectors.
As part of BENEFIT’s active involvement in the competition, the company has announced that Hanan Abdulla Hasan, Senior Manager of Public Relations and Communication, will serve on the competition’s supervisory committee. Her upcoming participation reflects BENEFIT’s forward-looking commitment to championing academic and professional excellence.
Commenting on the occasion, Hanan Abdulla Hasan, Senior Manager of Public Relations and Communication at BENEFIT, said, “We are privileged to support this pioneering initiative, which aligns seamlessly with BENEFIT’s enduring commitment to fostering innovation and nurturing the potential of Bahrain’s youth. Our participation is rooted in a deep sense of social responsibility and a firm belief in the pivotal role of innovation in shaping a sustainable future. Through such platforms, we seek to empower the next generation with the knowledge, skills, and foresight required to develop impactful solutions that address future challenges, in line with the United Nations Sustainable Development Goals 2030.”
Dr. Aseel Al Ayash Dean of the College of Engineering in Gulf University commented, “We extend our sincere gratitude to BENEFIT for their generous sponsorship and support of the Innovation and Sustainable Technology Solutions Competition. This contribution plays an instrumental role in helping us achieve the strategic goals of this initiative, namely, cultivating a culture of innovation and sustainability, encouraging efforts that address the imperatives of sustainable development, and enhancing the practical and professional capabilities of our students and participants.”
The event will bring together a diverse spectrum of participants, including secondary school students, university undergraduates, engineers, industry professionals, entrepreneurs, academic researchers, and subject matter experts representing a wide range of disciplines.
The competition seeks to inspire participants to develop and present innovative, sustainable technologies aimed at addressing pressing environmental, social, and economic challenges. It encourages the formulation of business models that integrate advanced technological solutions with core principles of sustainability. Moreover, it serves as a platform for emerging leaders, entrepreneurs, and innovators to contribute to the advancement of the Sustainable Development Goals, promote the ethos of responsible technology, and demonstrate its transformative potential across various sectors.
Attendees will have the opportunity to view a series of project presentations submitted by participants, covering diverse areas such as eco-friendly product design, smart and sustainable innovations, renewable energy technologies, water conservation and management, waste minimisation and recycling, green architectural solutions, and sustainable transportation systems. Outstanding projects will be formally recognised and awarded at the conclusion of the event.