Airbus bribery case: Two AirAsia chiefs step aside, triggers new probes worldwide
The Airbus bribery scandal led to another fallout after two chiefs of budget carrier AirAsia stepped aside for at least two months amid investigations.
The Airbus bribery scandal led to another fallout after two chiefs of budget carrier AirAsia stepped aside for at least two months amid investigations launched in several countries. AirAsia said that its chief executive officer (CEO) Tony Fernandes and executive chairman Kamarudin Meranun would step aside immediately.
The development came after Airbus SE agreed to pay a fine of $ 4 billion after reaching an agreement with prosecutors in Britain, France and the United States. UK’s serious fraud office (SFO) announced the record-breaking Deferred Prosecution Agreement (DPA) with Airbus SE after it started the probe in August 2016.
The company was accused of using external consultants to bribe customers to buy its civilian and military aircraft and the indictment covered five counts of failure to prevent bribery. The bribery scandal involved Airbus’ Commercial and Defence & Space divisions in five jurisdictions, including Sri Lanka, Malaysia, and Indonesia, from 2011 to 2015.
'Endemic in two core business areas'
As part of the DPA, which will be in force until January 2023, the has agreed to fully cooperate with the SFO in any future investigations and prosecutions. Dame Victoria Sharp, President of the Queen’s Bench Division (QBD), in her judgement, said that the seriousness of the criminality in this case hardly needs to be spelt out.
“The conduct took place over many years. It is no exaggeration to describe the investigation it gave rise to as worldwide, extending into every continent in which Airbus operates,” said Sharp.
“The number of countries subject to intense criminal investigation by the various agencies, and the scale and scope of the wrongdoing disclosed in the Statement of Facts demonstrate that bribery was to the extent indicated, endemic in two core business areas within Airbus,” she added.
SFO Director Lisa Osofsky said that Airbus paid bribes through agents around the world to stack the decks in its favour and win contracts around the globe. She added that the conduct of Airbus undermines free trade and fair development and credited the company for admitting its culpability.
Published By : Kunal Gaurav
Published On: 4 February 2020 at 13:12 IST