AirAsia's Tony Fernandes denies link between Airbus bribery scandal & his former F1 team

Malaysian entrepreneur and AirAsia top executive Tony Fernandes denied any links between his now-defunct Formula 1 racing team and the Airbus bribery scandal. Authorities are investigating the allegations that Airbus SE paid $50 million of sponsorship money to the Caterham F1 team to get orders from AirAsia.

Tony Fernandes and executive chairman Kamarudin Meranun stepped aside for at least two months amid the allegations of involvement in the bribery scandal. "Caterham F1, the company alleged to have been sponsored improperly by Airbus, was at the relevant time a Formula 1 racing team that had gone round the globe promoting amongst others AirAsia, AirAsia X, GE and Airbus," Fernandes and Kamarudin said in the statement.

"Throughout the period we were shareholders in Caterham, the company made no profit and was eventually disposed of for 1 pound sterling in 2014. From start to finish, this was a branding exercise and not a venture to make profit," the statement read.

Read: Airbus Nears Settlements With US, UK, French Investigators

Agreed to pay $4 billion in fine

Airbus SE has 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. 

Read: Fraud At Airbus: European Courts Weigh $4 Billion Plea Deal

As part of the DPA, which will be in force until January 2023, the company 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), said in her judgement that the seriousness of the criminality in this case hardly needs to be spelt out. 

“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.

Read: ED Summons AirAsia's Tony Fernandes & Top Mgmt In Connection With Money Laundering Case

Read: Airbus Bribery Case: Two AirAsia Chiefs Step Aside, Triggers New Probes Worldwide