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Hefty PR advice bill after Saudi arms scandal

When news of the Saudi arms factory broke in March, the Swedish Defence Research Agency hired crisis management consultants for over 300,000 kronor ($43,000).

Tax money well spent, according to the Defence Research Agency’s (Totalförsvarets forskningsinstitut, FOI) head of communications, Ann-Sofi Pejler Carlsson.

“It wouldn’t be cost effective to have a larger communications department. It’s actually fairly standard to bring in external expertise. In IT, for instance, all expertise is not internal,” she said to news agency TT.

The deal behind the controversial arms factory was revealed by Swedish national radio station SR on 6 March, showing that FOI had formed the decoy company SSTI to arrange the building of an arms factory.

As the scandal unfolded, defence minister Sten Tolgfors was forced to resign and the founder of SSTI, formerly employed by FOI, said that the money used to start the company consisted of public funds from FOI, and is currently being investigated for breach of trust.

When the news broke, FOI hired PR firm Gullers Grupp, and ran a bill of 316,250 kronor there for “media analyses” and “communication advice”, according to TT.

The agency’s communications head Pejler Carlsson is unwilling to discuss what exact advice they were given, but said it concerned both internal and external communication, when and how to present information.

News agency TT asked whether she’s concerned that the agency’s actions could be conceived as using tax money in an attempt to hide something from tax payers.

“I don’t know if there is such a risk, but I think it’s important for us to be able to get external help when extra need arises, as in this case.”

FOI’s lack of communication during the scandal came in for heavy criticism. Several media sources wanted to interview the agency’s head Jan-Olof Lind, but were met by constant refusals.

“We tried to work with our communication as best we could. The difficulty is that so much was confidential,” said Pejler Carlsson.

Several MPs are critical of FOI’s decision to pay for external crisis management.

“I think it’s completely horrible,” said Green Party MP Peter Rådberg to TT. Rådberg has previously criticised the way FOI has handled the Saudi arms deal.

“The former FOI boss, Lind, came to see us at the Riksdag’s defence committee, and he didn’t answer a single question. He just accounted for general matters. It was impossible to get anything out of the man,” Rådberg said.

Left Party MP Torbjörn Björlund was also critical of FOI’s actions, and was unimpressed by the argument that the confidential information involved bound FOI’s hands.

“That’s just an excuse. I think it’s cowardly to hide behind confidentiality. They can always find reasons to make something confidential; it’s built on their own values. To me it feels like a way to escape responsibility,” Björlund said, and continued:

“If you tell the truth and take care to stick to the rules, you shouldn’t need any external communications expertise.”

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YEMEN

French firm strikes Saudi weapons deal despite Yemen pressure

Saudi Arabia's state arms producer and a French government-majority firm signed an agreement Sunday on a joint venture to boost the kingdom's navy, amid calls to halt weapons sales to Riyadh over it role in Yemen.

French firm strikes Saudi weapons deal despite Yemen pressure
Saudi hovercraft participate in last year's "Gulf Shield 1" military drills. Photo: Bandar Al-Jaloud/Saudi Royal Palace/AFP

The memorandum of understanding between Saudi Arabian Military Industries (SAMI) and France's Naval Group is aimed at providing the oil-rich Gulf state's navy with “state-of-the-art systems”, a statement said.  

“Through design, construction, and maintenance activities, the joint venture will contribute significantly to further enhancing the capabilities and readiness of our Royal Saudi Naval Forces,” SAMI boss Andreas Schwer said.

A spokeswoman for Naval Group — which is owned by the French state and French multinational giant Thales — refused to give any more details.    

French lawmakers and rights groups have repeatedly called on France's government to suspend all arms deals to Riyadh because of the war in Yemen, where some 10,000 people have been killed since a Saudi-led coalition intervened in 2015.  

Riyadh is battling on the side of the internationally recognised government against Iran-aligned Huthi rebels, in a conflict that has seen all sides accused of potential war crimes. 

The US House of Representatives this week voted overwhelmingly to end American involvement in Saudi Arabia's war effort in neighbouring Yemen, dealing a rebuke to President Donald Trump and his alliance with the kingdom.

France, one of the world's biggest arms exporters, has sold equipment to Riyadh and fellow coalition member the UAE — notably Caesar artillery guns and ammunition, sniper rifles and armoured vehicles.

OPEC kingpin Saudi Arabia has been one of the world's top arms buyers for the past several years.

But in 2017, the kingdom's Public Investment Fund set up SAMI to manufacture arms locally with the fund expecting it to become one of the world's top 25 defence companies by 2030.

Naval Group — which was previously called DCNS — has been embroiled in a long-running graft scandal over the 2002 sale of two Scorpene submarines to Malaysia for $1.2 billion. 

The submarine maker is alleged to have paid more than 114 million euros ($128 million) in kickbacks to a shell company linked to a close associate of ousted Malaysian leader Najib Razak. 

A French investigation launched in 2010 has already led to four French executives involved in the deal being charged. They all deny wrongdoing.

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