BAE sues sultan of Brunei

London, April 3 | Updated: Apr 4 2005, 06:26am hrs
Britains largest defence contractor, BAE systems, is taking the sultan of Brunei, one of the worlds richest men, to court over a row involving over $1-billion order for three naval ships, a media report said on Sunday.

The contract worth over $1.3 billion was agreed several years ago and the Bae, led by chief executive Mark Turner, launched the first ship in January 2001 and the two other ships have also been completed since then, The Sunday Telegraph reported.

However, all three remain moored at Baes Scotstoun Yard on the Clyde river in Scotland, as the sultan has refused to accept them because they allegedly fail to meet his specifications, the paper said.

It said talks to resolve the dispute have been taking place for almost a year, adding it is understood that a date has now been set for the case to be heard at the international court of arbitration in Paris.

We are currently in arbitration and consequently cannot discuss the issue, a Bae spokesman was quoted as saying.