Sir Nigel Rudd, the City grandee, was detained by the US Department of Justice last week as part of an investigation into bribery allegations against BAE Systems, the arms manufacturer.

Sir Nigel is a non-executive director of BAE, Europe’s largest defence company, and was detained with Mike Turner, its chief executive, in Houston. He is also chairman of BAA, the airports operator, and deputy chairman of Barclays Bank. The pair are understood to have been issued with subpoenas as they entered the US. Both were detained for about 30 minutes and were asked to return for formal interviews at a future date.

The Home Office confirmed last night that it has been approached by the Department of Justice with a request for information that may help with the US investigations. The request has been made under a protocol called Mutual Legal Assistance. A Home office spokesman said: “It is an ongoing process, we cannot comment further.”

Sir Nigel and Mr Turner were on their way to tour BAE’s facility at Seeley, Texas, which makes armoured trucks for the US Army.

The detention of Sir Nigel and Mr Turner is part of an investigation into bribery and corruption allegations in BAE’s dealings with Saudi Arabia, although the move has upset both the company and the Foreign and Commonwealth Office.

The investigators are trying to discover out whether BAE paid bribes to Saudi officials including Prince Bandar, the former Saudi Ambassador to the US, as part of the al-Yamamah arms agreement, which has earned BAE £43 billion. BAE and Prince Bandar have denied any wrong-doing. The investigators are believed to have requested information on the al-Yamamah deal from those involved since sales began in 1985.

The Department of Justice has been taking a hard line against European businesses in recent weeks. BAE said that it had co-operated fully with investigators and its lawyers are likely to say that US officials could have written to Mr Turner requesting an interview or information, rather than ambush him as he arrived in the country. The detention of Sir Nigel may turn out to have been a mistake as he joined the board of BAE in September 2006, after the alleged payments to Prince Bandar. After the subpoenas were issued, both men were allowed to enter the US.

A Serious Fraud Office inquiry into the same deal was halted by the UK Government late in 2006 on grounds of national security. Last month the High Court ruled that the decision to end the investigation was unlawful and ordered the case be reopened. The SFO is appealing that ruling.

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