WASHINGTON Aug 18 U.S. weapons maker Raytheon
Co on Monday said it had won damages of about 185
million pounds ($309 million) after a UK arbitration tribunal
found the British government unlawfully terminated a border
security deal with the company in 2010.
Britain canceled its contract with Raytheon in 2010 for
eBorders, a border-control system aimed at thwarting terrorism
by collecting advance information on passengers traveling to the
UK, saying the company was in default.
Raytheon later sued the government for 500 million pounds in
damages, arguing that it had met its obligations on the program,
which has continued to be dogged by problems.
In its release, Raytheon said the UK Arbitration Tribunal
denied all Home Office claims for damages and clawback of
previous payments made to Raytheon Systems Ltd (RSL).
It also found that the Home Office had wrongfully retained
the 50 million pounds ($83 million) it had drawn on Raytheon
letters of credit in April 2011, but did not rule on the cost
and interest payable to the company as a result.
"The Tribunal's ruling confirms that RSL delivered
substantial capabilities to the UK Home Office under the
eBorders program. Raytheon remains committed to partnering with
the UK Government on key defense, national security and
commercial pursuits," the company said.
Raytheon spokesman Mike Doble declined further comment on
the legal decision.
(Reporting by Andrea Shalal; Editing by Leslie Adler)