BAE in £286m 'corruption' settlement

The move, which will see the firm plead guilty to two charges, follows an investigation into contracts BAE won from countries including Tanzania, the Czech Republic, Romania and South Africa.

BAE will pay $400m (255.7m) to the Department of Justice and 30m to the SFO, the firm said yesterday.

The SFO said the company would plead guilty in court to an offence of failing to keep "reasonably accurate accounting records" of activities in Tanzania.

The payout to the SFO will be made as an "ex gratia payment" for the benefit of the people of Tanzania.

SFO director Richard Alderman said he was pleased with the global outcome achieved in collaboration with the DoJ. It brought a "pragmatic end" to a long-running investigation.

Under the agreement with the DoJ, BAE Systems will plead guilty to one charge of conspiring to make false statements to the US government.