Letter from Secretary of State to BAE Systems
Letter from Secretary of State to BAE Systems.
Richard Olver
Chairman
BAE Systems
6 Carlton Gardens
London
SW1Y 5AD
United Kingdom
听
I promised to set out the details of the proposal that the Government of Tanzania prepared with the help of DFID鈥檚 highly experienced development professionals in Tanzania.听The proposal attached suggests that a one-off payment be made to top up the 鈥榚ducation capitation鈥� grant.听In the Government of Tanzania鈥檚 budget for 2010 the capitation grant was 拢40 million, the equivalent of 拢5 per student.听 However, this budget line has been consistently underfunded in recent years, so that only around 拢2.50 per student has actually been paid.听
It is my firm belief that BAE should consider adopting the proposal in full.听Far from being a political donation to a party (the Government of Tanzania is freely elected by the people of Tanzania), the proposal would use government financial systems to buy specific benefits for Tanzanian school children.听It is entirely in keeping with spirit of BAE鈥檚 settlement with the Serious Fraud Office when it said the payment should be 鈥榝or the benefit of the people of Tanzania鈥�.听The results would be very tangible:听4.4 million textbooks, syllabi for teachers in every primary school, 200,000 desks for kids and more than 1000 houses for teachers in remote areas.听听
In this way, the payment would also be transparent, auditable and could be independently monitored.听It would avoid the losses associated with multiple contributions via many intermediary organisations.听As a lead donor in Tanzania, DFID would be in a position to help verify that the money was being used for the intended purpose, as we do with the utmost rigour when it comes to British taxpayer routed through Tanzania鈥檚 budget.听And because it enjoys the support of the Government of Tanzania, it is likely to enable the episode to be concluded swiftly, justly and without needless acrimony between the UK and Tanzania.
[Handwritten] It would also underline your successful and credible 鈥榥ew broom鈥� approach and enable us to support and praise BAE for drawing a line under all this.听
With every good wish,
Yours ever,
Andrew Mitchell