MIKE TURNER, chief executive of BAE Systems, was last week detained by US authorities investigating corruption allegations involving arms sales to Saudi Arabia.

Mr Turner and another senior BAE executive were detained and issued with additional subpoenas by officials from the US department of justice on their way through Houston airport last Monday. The pair were kept for about half an hour and had documents, as well as personal electronic equipment, examined.

The department of justice acted as part of its investigation into the £43 billion (€54.1 billion) al-Yamamah arms deal under which Saudi Arabia bought aircraft and other defence equipment from Britain. It said last June that it was launching a probe to see if BAE's business deals concerning the kingdom of Saudi Arabia complied with anti-corruption laws.

There have been persistent allegations that bribery was involved in the contract, with stories of slush funds used to entertain Saudi officials and royalty.

BAE has always denied any wrongdoing. At the same time as Mr Turner and his colleague were detained, several US-based BAE executives were also issued with subpoenas at their homes.

BAE yesterday confirmed that the department of justice had served "a number of additional subpoenas in the US on employees of BAE Systems plc and BAE Systems Inc as part of its ongoing investigation, which the company has previously announced".

"The company has been and continues to be in discussion with the DoJ concerning the subpoenas served in the course of its investigation," it said in a statement.

British officials in Washington were reportedly alerted to the action when Mr Turner, who is due to retire from BAE in August, alerted military contacts at the embassy.

The department of justice began its inquiry after Britain scrapped its own investigation into BAE's dealings in Saudi Arabia.

The decision by the Serious Fraud Office in 2006 sparked outrage and has since been attacked by the High Court which ruled earlier this year that it had acted unlawfully in abandoning the case.

The British home office has been considering a request for assistance from the department of justice since last year. Yesterday it said the request was "being given detailed consideration".

Separately, the Serious Fraud Office is still investigating allegations of bribery against BAE in four other countries. - ( Financial Times service)