LANCASHIRE business leaders have told of the difficulties in dealing with overseas firms after it was announced that BAE Systems could face corruption charges.

There are fears the Serious Fraud Office inquiry could have implications for the thousands of workers employed at the firm’s Samlesbury site.

The SFO confirmed it is to pursue claims that the firm paid out millions of pounds in bribes to win contracts from a number of countries, including Tanzania, the Czech Republic, Romania and South Africa.

The company has denied the allegations.

A separate case concerning a deal with Saudi Arabia was dropped in 2007 on national security grounds, following the intervention of then-prime minister Tony Blair.

Local businessman, Clive Balchin, pledged his support for the arms manufacturer.

Mr Balchin, a director of James Trickett Financial Services in Rawtenstall said: “Things in business are never straight forward and Tony Blair was right to stop the first inquiry into BAE.

“I do not believe that BAE is corrupt. There is a cost to acquiring business especially in the Middle East where there is a middle man who normally requests a fee.

"This is just the way business is done. The SFO doesn’t care about people’s jobs but BAE have to schmooze and entertain if they want to win contracts.

“You have to network to win contracts. It is not bribery it is just another way of acquiring business.”

Businessesman and Blackburn with Darwen Council deputy leader Tony Melia said ‘there were certain processes that are acceptable abroad, that may be wholly unacceptable in Britain’.”

“I would urge the Government to protect big British business at a time of economic uncertainty.”

East Lancashire Chamber of Commerce chief executive Mike Damms urged any action against BAE to be ‘proportionate’ and prompt.

He said: “Let’s get it over and done with and then we can move on.

“It can be difficult dealing with some of the countries that this probe covers and many defence contracts are done as much by governments as by companies like BAE.

“However, it is straightforward for East Lancashire because we would be a pretty impoverished place without BAE and the aerospace industry.”

Dennis Mendoros, managing director of Kelbrook-based aerospace company Euravia, said: “We appreciate the complexity of the challenges in dealing internationally in aerospace and we recognise that some countries have completely different rules to those we are used to Britain.

"I believe that BAE will have a very good defence against the charges against them.”

An SFO statement read: “The Serious Fraud Office has announced that it intends to seek the Attorney General’s consent to prosecute BAE Systems for offences relating to overseas corruption and will prepare its papers to be submitted to the Attorney when the SFO considers it is ready to proceed.”

A spokesman for BAE systems said the firm had ‘at all times acted responsibly.'

He said: “If the director of the SFO obtains the consent that he seeks from the Attorney General and proceedings are commenced, the company will deal with any issues raised in those proceedings at the appropriate time and, if necessary, in court.”