British prosecutors announced criminal charges against four lawmakers over alleged abuse of parliamentary expenses.

In a dramatic twist in a scandal that has rocked politics in the country, Keir Starmer, the director of public prosecutions (DPP), said charges of false accounting would be brought against three members of the elected House of Commons (MPs) and one member of the unelected upper House of Lords.

"In four cases, we have concluded that there is sufficient evidence to bring criminal charges and that it is in the public interest to charge the individuals concerned," he said. "Accordingly, summonses in these cases have been obtained from the City of Westminster Magistrates Court and will now be served on the individuals in question."

The three MPs are from the ruling Labour Party, while the House of Lords member is a member of the main opposition Conservative Party.

Former minister Elliot Morley MP faces two charges alleging that he dishonestly claimed mortgage expenses, including claiming 16,000 pounds ($29,000) for a mortgage that no longer existed.

His fellow MP David Chaytor faces three charges, including allegations that he used false invoices to claim for IT services and that he claimed almost 13,000 pounds ($23,500) in rent for a London property that he in fact owned.

The third MP to be named was Jim Devine, who faces two charges. He is accused of claiming thousands of pounds worth of cleaning services and stationery using false invoices.

Paul White, known as Lord Hanningfield, faces six charges over allegations that he claimed expenses "to which he knew he was not entitled" including for staying overnight in London when records show he was actually driven home.

No charges were brought against a second member of the House of Lords who had also been under investigation, Starmer said, adding that a sixth case was still under consideration.

The announcement of charges came a day after an investigation concluded that British lawmakers were ordered to repay more than one million pounds in expenses, and slammed the "deeply flawed" system. The long-awaited audit by former civil servant Thomas Legg said lawmakers must return 1.1 million pounds ($2 million) in payments received for loans on second homes, gardening and cleaning expenses.

Defence giant BAE Systems said it had agreed to pay fines of nearly $US450 million ($520 million) to settle charges brought by Britain's Serious Fraud Office (SFO) and the US Department of Justice.

The fines - $400 million to the DoJ, and 30 million pounds to the SFO - relate to investigations into BAE deals with countries including Tanzania, the Czech Republic, Romania and South Africa.

The defence firm admitted to making false statements to the US government about its compliance with anti-corruption regulations, and for failing to keep accurate accounts regarding a 1999 deal with Tanzania.

A Indian national has been remanded in custody in western Victoria charged with sexually assaulting two girls.

Joginder Singh, 23, allegedly performed sexual acts with the girls in a car in Horsham last month after buying them alcohol.

He has been charged with sexual penetration and indecent acts with a child under 16.

Singh, who is in Australia on a student visa, has applied for bail twice in the Magistrates Court, saying he has surrendered his passport and needs to return to Melbourne for study.

But Magistrate Richard Pithouse said Singh posed an unacceptable risk of re-offending because he had already broken previous bail conditions.

AN Indian taxi driver is facing charges over the bashing of a passenger who was knocked unconscious in St Kilda.

The 25-year-old passenger was involved in a heated argument with the cab driver around 10pm last night as they pulled over in Acland St in St Kilda.

A witness says the passenger tried to walk away but the cab driver chased him down and had to be restrained by security staff working at a nearby business.

The passenger kept walking away as the cab driver then grabbed a baton from the boot of his cab, drove up next to the passenger and allegedly starting striking the man repeatedly with the weapon, the witness says.

"Within a few minutes, many other cab drivers, all of them Indian, all turned up," witness Karen told Fairfax Radio this morning. "And I could just see how out of hand this is all getting."