On Feb. 5, U.S. District Judge Rosemary Collyer issued a temporary
restraining order against Bandar — today the national security adviser of
Saudi Arabia — from transferring the proceeds of any property sales from
the United States. Ms. Collyer cited a suit by the City of Harper Woods
Employees' Retirement System in September 2007, which accused BAE directors
of breaches of fiduciary duties in connection with the alleged bribes to
Saudi Arabia.
Bandar, former Riggs Bank of Washington and its successor, PNC Financial
Group, were named as defendants by Harper Woods, a community outside
Detroit. The Saudi Defense and Aviation Ministry maintained an account at
Riggs.
The suit asserted that Bandar, the son of Crown Prince and Defense
Minister Sultan Bin Abdul Aziz, transferred the purported bribes from BAE to
purchase at least $300 million worth of property in the United States. They
included a Colorado ranch and the former William Randolph Hearst mansion in
California.
The judge did not rule on the merit of the suit. But Ms. Collyer said
the case raised serious questions of law that warranted a temporary order
against Bandar.
"It [restraining order] may, of course, be terminated or modified upon
application to the court by Prince Bandar," the order read.
The judge scheduled a Feb. 14 hearing on whether to extend the temporary
order. Under the judge's ruling, Bandar would not be prevented from "selling
real property...[the order] only interferes with his ability to invest
and/or deposit any sales proceeds in a minimal way."
The restraining order comes amid a Justice Department investigation of
an alleged BAE slush fund for Saudi princes involved in Al Yamamah, which
brought an estimated $86 billion worth of British aircraft, ships and
military services to the Arab kingdom since 1986. In December 2007, the
British police closed an anti-corruption investigation of BAE, a leading
contractor to the U.S. military.
