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Mohd Suhaimi Fariz

Airbus Agrees to $4 bn Settlement to End Bribery Probe

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While Boeing deals with the repercussions of the MAX, Airbus deals with the repercussions of a massive bribery scandal. 

Among the alleged recepients include TransAsia Airways, Sri Lankan Airlines, Garuda and AirAsia. 

https://www.ft.com/content/f7a01a60-442b-11ea-abea-0c7a29cd66fe

In AirAsia's case, the alleged bribe came in the form of sponsorship of the Caterham F1 team. 

https://www.google.com/amp/s/www.wsj.com/amp/articles/airbus-bribery-charges-unveiled-after-4-billion-settlement-11580480153

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AirAsia denies wrongdoing in sports sponsorship case

https://www.malaymail.com/news/malaysia/2020/02/01/airasia-denies-wrongdoing-in-sports-sponsorship-case/1833661

 

Airbus bribery claims: Anti-corruption watchdog wants AirAsia, SC to hold independent probes

https://www.malaymail.com/news/malaysia/2020/02/02/airbus-bribery-claims-anti-corruption-watchdog-wants-airasia-sc-to-hold-ind/1833744

Edited by flee

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Might want to checkout why airasia is giving id discount tickets to atc staffs as well. Also the Rolls Royce trent 700 engine procurement commission for the a330 fleet.

 

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12 hours ago, jahur said:

Might want to checkout why airasia is giving id discount tickets to atc staffs as well. Also the Rolls Royce trent 700 engine procurement commission for the a330 fleet.

 

 

CSR 😉

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7 hours ago, Mohd Suhaimi Fariz said:

I was under the impression that ATC staff get ID benefits similar to airline staff, no?

ID benefits are only extended to airline employees. ATC staff as we know are govt servants. There are some countries which outsource their ATC service to private companies to be runned as independent entities. But not here in Malaysia as it comes under Ministry of Transport via CAAM. 

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Kamarudin, Tony Fernandes to relinquish executive posts amid Airbus bribery probe

https://www.malaymail.com/news/money/2020/02/03/kamarudin-tony-fernandes-to-relinquish-executive-posts-amid-airbus-bribery/1834141

 

Airbus put potential damage from bribery conviction at €200bn

https://www.flightglobal.com/airframers/airbus-put-potential-damage-from-bribery-conviction-at-200bn/136488.article

Edited by flee

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11 minutes ago, flee said:

Expect BoD to clear them after investigation like Nazir at CIMB.

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Just now, KK Lee said:

Expect BoD to clear them after investigation like Nazir at CIMB.

If you read the Airasia press releases, they admit no wrongdoing. This is just a PR exercise to shore up confidence and also to protect the share price.

Multiple investigations are ongoing now, latest being started by Mavcom.

https://www.malaymail.com/news/money/2020/02/03/malaysias-aviation-authority-to-see-if-airasia-sister-company-broke-laws-on/1834080

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10 hours ago, flee said:

If you read the Airasia press releases, they admit no wrongdoing. This is just a PR exercise to shore up confidence and also to protect the share price.

Multiple investigations are ongoing now, latest being started by Mavcom.

https://www.malaymail.com/news/money/2020/02/03/malaysias-aviation-authority-to-see-if-airasia-sister-company-broke-laws-on/1834080

In a filing with Bursa Malaysia, the airline said the relinquishment would be for a period of two months or such other period that the company may deem fit.

In view of the current difficult economic circumstances facing the airline industry, a Non-Executive Independent Board Committee formed by AAGB’s Board of Directors has also decided to retain them as advisors to the company during the two-month period.

So basically, nothing la.. haha

Personally, from my limited knowledge, I don't think there is any wrongdoing either. Unethical, maybe. But not corruption. I don't know.. hmm

Edited by jani

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2 hours ago, jani said:

So basically, nothing la.. haha

Personally, from my limited knowledge, I don't think there is any wrongdoing either. Unethical, maybe. But not corruption. I don't know.. hmm

Maybe, but it's a bit dumb for AirAsia Executive 1 to write this:

“Honestly [Airbus employee 1 [senior]] I'm fed up. You owe me 4 million already and I’m owed 16 million in total. This shd have been pauid [sic] ages ago when I bought thre [sic] first 60 aircraft. I want my money and I want compensation … pay up. I want my whole 16 million now..”

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Here are some official statements from the horses' mouths.

SFO enters into €991m Deferred Prosecution Agreement with Airbus as part of a €3.6bn global resolution

https://www.sfo.gov.uk/2020/01/31/sfo-enters-into-e991m-deferred-prosecution-agreement-with-airbus-as-part-of-a-e3-6bn-global-resolution/

Airbus Agrees to Pay over $3.9 Billion in Global Penalties to Resolve Foreign Bribery and ITAR Case

https://www.justice.gov/opa/pr/airbus-agrees-pay-over-39-billion-global-penalties-resolve-foreign-bribery-and-itar-case

Airbus reaches agreements with French, U.K. and U.S. authorities

https://www.airbus.com/newsroom/press-releases/en/2020/01/airbus-reaches-agreements-with-french-uk-and-us-authorities.html

Airbus' Deferred Prosecution Agreement

https://newsroom.airasia.com/news/2020/2/1/airbus-deferred-prosecution-agreement

 

 

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4 hours ago, jani said:

Personally, from my limited knowledge, I don't think there is any wrongdoing either. Unethical, maybe. But not corruption. I don't know.. hmm

I think that Airbus' reputation has suffered a huge tumble - it essentially says that Airbus is unable to sell its products unless it bribes the officials making the purchasing decisions. That is why their senior management shakeup took place - Tom Enders, Fabrice Bregier, John Leahy are all gone. John Leahy is probably the one who should shoulder most of the responsibility for this scandal. 

But business, being what it is, is sort of turning the other cheek - they are trying to examine the consequences if Airbus was closed down. Aviation would be in chaos if that happened! So they are concluding that what Airbus did was wrong but they should not be dismantled. Just impose a fine! Capitalism at its finest!!!

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In summary:

Commercial Contract:
Malaysia's AirAsia- Two executives for F1 Team sponsorship for return on 55 Airbus A330neos unveiled in 2014 plus earlier agreements for 25 A330s, 64 A320neos and 36 A320s.

Sri Lanka's SriLankan Airlines- Wife of a SriLankan Airlines executive for 6 A330-300ceo/ 4 A350-900 lease airframe

Colombia's Avianca Airlines- An agent over 100 A320neo sales to Avianca, some of which were earmarked for a senior executive at the airline's parent Avianca Holdings.

South Korea's Korean Air- A former top executive at the carrier about US$15 million via money provided to Korean and US universities linked to him, a payment through an intermediary, and investments in a structure owned by his son. 29 A330-200/300ceo

Indonesia's Garuda Indonesia- 15 A330-300ceo and 40 A320s for Citilink

Saudi Arabia's Saudia- 32 A330-300ceo

Taiwan's China Airlines- 14 A350-900

Taiwan's TransAsia Airways- An executive with Trans Asia Airways for 2 A330s and 18 A321neo

United Arab Emirates's AirArabia- 44 A320ceo

Nepal's Nepal Airlines- 2 A330-200ceo and 2 A320ceo

China- Using several consultants, Airbus moved funds through Lebanon to Chinese companies with political connections to win orders for its passenger planes, according to US prosecutors.

It helped set up a fund in 2011 for pilot education and aviation-management sessions, but the money was really used to pay for social events for government officials and Chinese airline executives.

Airbus also used suppliers that were owned by one of the government officials and the airlines to organise golf trips and other non-educational activities.

Military Contract:
Ghana- A relative of a government official for return on CN295 order

Indonesia- Airbus paid €16.1 million in political contributions, which helped lead to the sale of nine military planes. It also hired a local company with complex ownership behind which lay links to the nation’s leadership.

Vietnam- A Hong Kong company with connections to the Vietnamese leadership was hired, and €6.2 million in political commissions were paid.

Other counties involved in the bribery scandal:
India, Russia, Japan, Turkey, Mexico, Thailand, Brazil, and Kuwait

Source: FlightGlobal, News Agencies

Edited by JuliusWong

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37 minutes ago, Mohd Suhaimi Fariz said:

The surprising thing is that the A400M purchase by the RMAF is not included in this - does it mean the procurement was on the up and up?

This investigation on Airbus was for the period between 2011 and 2015. I believe that the RMAF order took place around 2005.

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If it would have involved MH+Khazanah im sure this topic would have reached 10 pages by now. But since its about AAGB, TF and not the rakyats money, nobody cares. 

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Just months ago he closed down his facebook and social accounts citing toxic comments. 

Another country looking for him.

https://www.theedgemarkets.com/article/india-summons-tony-fernandes-money-laundering-case

I think the issue is Asean companies still relies on illegal kickbacks and sponsorship and cable connections which is usually illegal in western nations. Airbus has resorted to this tactic to outfish Boeing in the past. 

Nissan Ex CEO also caught up with illegal fund use recently in a country like Japan and now he is on the run in Lebanon. Believe if the company is in this region nothing much would happened.

Edited by jahur

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4 hours ago, Pall said:

If it would have involved MH+Khazanah im sure this topic would have reached 10 pages by now. But since its about AAGB, TF and not the rakyats money, nobody cares. 

Not quite - AAGB and AAXB are both public companies - so confidence in Bursa Malaysia is at stake. Investor protection is important if our capital markets are to be trusted.

I think that this is a borderline corruption case because money went into a sponsorship which is normal in Formula 1. The cars did carry Airbus logos (I remember Airbus also sponsored Americas Cup yachts) even though Airbus does not seem to be directly involved in motor racing products. So the payment was not to some secret slush fund. It should be interesting to see what the MACC/SEC/Mavcom can turn up.

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Nothing wrong in seeking an offset, says Dr M

https://www.freemalaysiatoday.com/category/nation/2020/02/06/nothing-wrong-is-seeking-an-offset-says-dr-m/

🤣

This reminds me about how in the 1990s, Tajuddin Ramli used the threat of not buying any Airbus products ever again when he didn't get slots to increase flights into CDG to daily. 

https://www.flightglobal.com/mas-chief-barters-orders-for-slots/14543.article

Edited by Mohd Suhaimi Fariz

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The very term "Deferred Prosecution Agreement" stinks to high heaven ! 😁

What ? Airbus pays a fine now to buy time before they (SFO ?) lay it down unto them kaw-kaw ?! 😆

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