A British company allegedly paid a Saudi prince more than 1 billion pounds (US$2 billion; â‚¬1.47 billion) as part of a 43 billion pound (US$85 billion; â‚¬63 billion) arms deal between Saudi Arabia and Britain in 1985, a newspaper reported.
BAE Systems, the prime contractor, channeled the money through a US bank in Washington to an account controlled by Prince Bandar bin Sultan, who negotiated the Al-Yamamah arms deal to sell 100 British warplanes to Saudi Arabia, The Guardian reported Thursday.
BAE said it had not violated British law and denied any wrongdoing.
Bandar also issued a statement "categorically denying" that he received any "improper secret commissions or back handers" in the arms deal. Money was paid into accounts in the name of the Saudi Arabian Ministry of Defense and Aviation (MODA), his statement said.