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Arbitration tribunal rules that government's termination of its contract with e-Borders firm, Raytheon, was unlawful, reports the BBC.

Having signed a nine-year contract with US e-Borders firm, Raytheon, in 2007, the government later deemed the programme a failure and believed there was no way of saving it. Terminating the contract with Raytheon just three years into the contract, Raytheon sought compensation through the arbitration tribunal which settles disputes regarding global contracts.

'Raytheon threatened to sue ministers for £500m, blaming the UK Border Agency for the failings, before the two sides entered into binding arbitration to reach a settlement', reports the BBC.