Impact of LIBOR on Future Strategic Tanker Aircraft purchase deal

Joel Benjamin made this Freedom of Information request to Ministry of Defence

This request has been closed to new correspondence from the public body. Contact us if you think it ought be re-opened.

The request was partially successful.

Dear Ministry of Defence,

On 27/03/2008, the MOD closed a procurement deal for the purchase of a new generation of mid-air refuelling tanker aircraft in a £2.68 billion Private Finance Initiative (PFI) deal with EADS, Rolls Royce, Thales and VT Group.

The PFI contract signed contains complex financial swaps and derivatives products which are referenced to LIBOR, the London Interbank Offered Rate manipulated by UK and global banks from at least 2005, until 2012.

As the PFI contract is referenced against LIBOR, it is necessary to understand the particular mechanics of the PFI deal agreed by MOD in order to determine if taxpayer losses may have arisen as a result of illegal manipulation by the banks.

Therefore please provide:

1. A copy of the original FSTA PFI business case, including any references to LIBOR as a benchmark, for swaps and derivatives, or management fees.

2. Details/ copes of any advice the MOD has sought, or received in relation to LIBOR and its impact on PFI contracts which reference the manipulated LIBOR rate, and from whom.

3. Confirmation of any actions the MOD has, or intends to take in future to determine MOD exposure to the LIBOR scandal, and possible grounds to recoup taxpayer losses from LIBOR rigging banks.

Yours faithfully,

Joel Benjamin

DES Sec-FOI (MULTIUSER),

1 Attachment

Dear Mr Benjamin,
 
 
Please find attached our response to your recent Freedom of Information
Act request about the business case for the Future Strategic Tanker
Aircraft.
 
 
Yours Sincerely,
 

Mike Gwyther
DES-Sec-Air 1
Maple 0a #2043  MOD Abbey Wood
STD 0117 91 30204
Mil 9352 30204

 

Dear DES Sec-FOI (MULTIUSER),

Thank you for confirming that the original FSTA business case did not include any reference to the LIBOR rate, manipulated by banks between at least 2005 and 2012.

The FSTA PFI contract should contain swaps and derivatives that are pegged to the manipulated LIBOR benchmark.

Please provide a copy of the FSTA business case, and PFI contract.

Yours sincerely,

Joel Benjamin

DES Sec-FOI (MULTIUSER),

1 Attachment

Dear Mr Benjamin,
 
 
Please find attached an interim response to your recent Freedom of
Information Act for the FSTA business case and PFI contract.
 
 
 
Yours Sincerely,
 
 
Michael Gwyther
DES-Sec-Air 1
Maple 0a #2043  MOD Abbey Wood 
 
 

Dear DES Sec-FOI (MULTIUSER),

Further to your request to refine the search criteria for PFI documentation.

In order to expedite and refine this process - please provide the PFI index/ "bible of documents" at your earliest convenience.

As previously stated, I am interested in obtaining the financial/ business case and PFI contract documentation including Vfm calculations and the hedging strategy and any relevant swaps agreements pegged to the contract.

I look forward to your response.

Yours sincerely,

Joel Benjamin

DES Sec-Air1a (Traina, Fiona C2),

1 Attachment

Dear Mr Benjamin,

 

Please find attached an interim response to your request under FOI for a
copy of the FSTA business case and PFI contract.

 

Kind regards,

 

DE&S Policy Secretariat Air

 

DES Sec-FOI (MULTIUSER),

3 Attachments

Dear Mr Benjamin,
 
Please find attached our response to your Freedom of Information Act
request about the Future Strategic Tanker Aircraft programme.
 
 
I apologise for the delay in providing this information.
 
 
 
Yours Sincerely,
 

Mike Gwyther
DES-Sec-Air 1
Maple 0a #2043  MOD Abbey Wood

 

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