BAT accused of smuggling, money-laundering links

Clive Bates, Director of Action on Smoking and Health (ASH), and journalist Duncan Campbell laid out their case against BAT to the Health Committee. Sitting alongside the accusers were BAT’s chairman Martin Broughton and the company’s best known executive, Kenneth Clarke – former Conservative Chancellor of the Exchequer and ex-Health Secretary.

While BAT acknowledged smuggling may have taken place in markets like Colombia, they insisted it happened without their permission and company backing. But Bates and Campbell disagreed. "The assertion by BAT that it only acts legally is false," said a joint submission to the committee.

"While there is little evidence of BAT smuggling tobacco itself, there is compelling evidence to suggestion that BAT is a significant part of a conspiracy which causes smuggling to happen."

BAT "ALMOST CERTAINLY" HAS DRUG-LAUNDERING LINKS: On the money-laundering charge, ASH’s paper added: "The prevalence of tobacco in Colombia and Golden Triangle (drug producing region) points to a wider picture which almost certainly involves the laundering of illegal narco-dollars – proceeds of cocaine and heroin trafficking."

It said while there was no evidence directly implicating BAT staff, tobacco smuggling was a process used to launder money from organised drug crime. Campbell told the committee that BAT used a series of euphemisms for illegal trade or smuggling in its company documents.

In a theatrical gesture during what is normally a dry parliamentary affair, Campbell brandished a consignment of illegal BAT Belmont cigarettes with the words: "These were purchased on the black markets of Bogota, Colombia three weeks ago."

He said BAT documents showed the company had code names for smuggling projects. "Clarke should look at the following code named projects: Jacko, Not-grass, Ajax."

Broughton hit back: "He is making lots of charges… that we manage smuggling and are involved in some form of money laundering. We refute that completely."

He later held up one piece of evidence put forward by Campbell and said: "If that is Campbell’s unimpeachable evidence, then…." ripping the letter in two with a flourish.

Clarke, doyen of the Westminster Parliament, insisted he had investigated fully and given the company a clean bill of health. "If I get a complaint, I investigate it… there’s nothing there that supports the conclusion he (Campbell) so freely makes."