MoD defends plans to sell off research arm

The Government defended plans yesterday to sell off a research arm of the Ministry of Defence to a foreign company in which the Saudi bin Laden Group had an interest.

The Carlyle Group, based in the United States, has been named by the MoD as its preferred bidder to take over its research and technology division, QinetiQ (formerly the Defence Research Agency).

Fiona Draper, of the trade union Prospect, which represents scientists at QinetiQ, said: "The fact that they are a foreign company will obviously exacerbate my members' concerns. Given Carlyle's fairly opaque structure, there must be concerns over whether undue influence may be brought to bear which may not be in Britain's interest."

Lewis Moonie, a Defence minister, accepted there were concerns among MPs and said Parliament would be fully updated when it returned from the summer recess but stressed that the company had been thoroughly vetted by the MoD. He refused to give the Today programme on BBC Radio 4 details of the checks.

"We are not selling it to a foreign company, we are looking for a strategic partner to help the less essential, from the point of security, national interest part of our defence research group to grow and prosper," he said.

A spokesman for the Carlyle Group said it was "not affiliated at all with [Osama] bin Laden", adding: "After the events of 11 September it was deemed prudent that Carlyle buy back those holdings from the Saudi bin Laden Group."