Fresh controversy surrounded BAE Systems, as new allegations of corruption surfaced around the Al-Yamamah arms deal with Saudi Arabia. "The charges that could torpedo BAE: a new sub launched, two big deals in the offing, but scandal has broken the surface again" (Independent, 10/6). The UK's largest defence group remained adamant that it had been involved in no wrongdoing, but both its reputation, and that of the Government, came under heavy scrutiny as the newspaper heavyweights referred to the deal in uncompromising terms; "Sordid" wrote Simon Jenkins (Sunday Times, 10/6), while the Observer's Will Hutton referenced the affair as "squalid" (10/6).

Although, the company refused to confirm that it was to set up an independent ethics panel to investigate its business dealings, the move was viewed as an attempt "to draw a line under allegations of corruption" (Sunday Times, 10/6) and repair its public image and international standing, particularly with the Americans.

City commentators remained sanguine however, confident that the issue would not adversely affect BAE's business success. "Despite the dirt thrown, BAE's share price has been armour-plated. How come? Well, you don't put your money into an arms manufacturer if ethical investment is your top priority" (Ruth Sunderland, Observer, 10/6).