At the time the deal was signed, Lockheed informed Egypt that no commissions would be paid alongside the deal, in compliance with Egyptian law—which required prior disclosure—and FMF requirements. Contrary to this pledge, Lockheed promised a USD 1.8 million commission payment, in the form of a USD 600,000 per plane agent’s fee, to Dr. Leila I. Takla, a member of the Egyptian parliament (the People’s Assembly), and Lockheed’s in-country consultant since 1980. Takla had previously served as a chair of the Foreign Affairs Committee of the People’s Assembly during the late 1970s, and after being re-elected to parliament in 1987 was once again sitting on the committee as a member. From 1987 to 1990, she received monthly retainer payments from Lockheed that added up to USD 129,000 over the three-year period.

According to charging documents, Takla performed several services for Lockheed that helped the U.S. aeronautics firm win the transport plane contract. First, she lobbied an unidentified U.S. congressperson to use U.S. end-user controls to prevent Israel from re-selling its transport aircraft originally purchased from the United States. Second, she provided Lockheed with specific information that undermined the Egyptian price negotiators’ bargaining position, informing the arms exporter in early April 1989 that funds had been made available for the purchase and that Lockheed should hold firm on its price quotation. She also informed Lockheed that Egypt’s lead price negotiator had been given authority to make a binding commitment. Third, U.S. prosecutors made the more general claim that Takla was induced to use her influence with the Egyptian government to ensure that Lockheed was granted the contract.