The Directors of a British arms manufacturer have been jailed at the Old Bailey today and disqualified from being directors. The two men pleaded guilty to bribing an employee at an American firm in order to secure a lucrative contract following an investigation by City of London Police.
Gillam and Davies are the directors of Mondial Defence Systems Limited, a company which has supplied military equipment such as bomb disposal and de-mining apparatus to armed forces and NGOs around the world.
In 2009 Mr Gillam initiated contact with RONCO, an American company which he knew to have a contract to supply equipment to the Afghan National Army.
Mondial was invited to bid for a £5m contract with RONCO and meetings took place in London at the Ritz Hotel and in Washington DC. Mondial won the contract and following an initial payment of £2m to Mondial by RONCO, Mondial then transferred £120,000 into the bank account of Robert Gannon, RONCO’s Director of Operations from a bank account registered in Singapore.
Stephen Rowland, Specialist Prosecutor at the Crown Prosecution Service said:
“Bribery is a crime with a corrosive effect. It impedes the prospects of honest business competitors and can ultimately cost jobs and livelihoods.
“Evidence including bank accounts and email correspondence discussing the payments was presented by the prosecution to demonstrate a compelling case, leaving these men with no option but to plead guilty. These sentences send a clear message that bribery can and will be successfully prosecuted by the CPS.”
Robert Gillam was the founder and director of Mondial, which he set up in 1986.
Simon Davies was the financial director of Mondial, having joined in 2009.
Gillam and Davies each face a charge contrary to section 1 of the Prevention of Corruption Act 1906.
Gillam was sentenced to two years imprisonment and disqualified from being a director for five years. He was ordered to pay prosecution costs.
Simon Davies was sentenced to 11 months imprisonment and disqualified from being a director for two years. He was also ordered to pay prosecution costs.