Smith & Nephew, the medical devices company, has been asked by the Serious Fraud Office to submit documents as part of its inquiry into allegations that British companies paid bribes to Saddam Hussein’s regime in Iraq.

The SFO launched its investigation into the United Nations Oil-For-Food programme at the begining of the year.

Its investigation centres around which medicines were supplied to Iraq in 2003. GlaxoSmithKline and AstraZeneca have also been asked to submit papers.

Smith & Nephew said today: "The company has received a letter requesting documentation and it will comply."

The SFO is seeking information from a number of companies and will decide whether or not to take the case further.

The inquiry was prompted by a UN report in 2005 by Paul Volcker, the former chairman of the US Federal Reserve, who listed more than 2,000 companies worldwide that could have been involved with bribes paid to the former regime in Iraq to secure contracts under the UN programme.

The programme was designed to allow Iraq to sell a limited amount of oil to buy food and medicines from foreign companies. Mr Volcker said that Saddam’s regime had demanded rewards from companies in return for contracts.

According to the UN report, there was evidence that suggested that AstraZeneca had paid kickbacks of $162,000 (£81,000) to secure $2.9 million worth of contracts. GSK was accused of paying $1 million for business worth $11.9 million.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive