AN arms firm which supplies Israel and has a factory in Scotland is the focus of a probe by the Serious Fraud Office.

The investigation into French defence giant Thales was announced on Thursday amid allegations of bribery and corruption.

Authorities in the UK and France said they are carrying out a joint probe into the firm, which employs more than 7000 staff in the UK, including at a factory in Govan.

Thales is one of the Government’s key defence contractors, and built hundreds of lightweight missiles which the UK sent to Ukraine in September.

It comes after police in France, the Netherlands and Spain searched the company’s offices in June, over suspicions of corruption linked to arms sales abroad, according to reports.

Investigators from the SFO and French authority Parquet National Financier have informed the company of the investigation, they said on Thursday.

The director of the Serious Fraud Office, Nick Ephgrave QPM, said: “Working collaboratively with our international partners is a crucial factor in the fight against international corruption and with this case I hope to reinforce the SFO and PNF’s long-standing relationship, built on mutual cooperation and shared success.

“We will together rigorously pursue every avenue in our investigation into these serious allegations.”

Thales said in a statement to French financial markets: “Thales confirms that the Parquet National Financier in France and the Serious Fraud Office in the United Kingdom have initiated an investigation in relation to four Thales entities located in France and the UK, regarding the performance of a contract in Asia.

“Thales denies the allegations brought to its knowledge.

“The group is fully co-operating with the PNF in France and the SFO in the UK.

“Thales complies with all national and international regulations.”