Malaysia regulator to probe if AirAsia broke rules in Airbus deals

This post was originally published on this site
https://i-invdn-com.akamaized.net/trkd-images/LYNXMPEG1108L_L.jpg

KUALA LUMPUR (Reuters) – Malaysia’s securities regulator said on Sunday it will examine whether AirAsia Group (KL:) and unit AirAsia X (KL:) broke securities laws, after UK prosecutors accused executives of receiving bribes from Airbus (PA:) for buying planes.

The allegations came to light on Friday when Airbus agreed to a record $4 billion settlement with France, Britain and the United States. Prosecutors said it had bribed public officials and hidden payments as part of a pattern of worldwide corruption.

Britain’s Serious Fraud Office (SFO) said on Friday that between October 2013 and January 2015, Airbus’s then-parent EADS paid $50 million to sponsor a sports team that was jointly owned by two people described as AirAsia Executive 1 and Executive 2.

The SFO said the executives were rewarded for an aircraft order from Airbus, an allegation AirAsia denied late on Saturday.

“The Securities Commission Malaysia will examine the allegations and review all available evidence to determine if there is any breach of securities laws,” Syed Zaid Albar, the regulator’s chairman, said in a statement.

Directors who act with the intent to cause wrongful loss to their listed firms can face jail or fines, he said.

Malaysia’s anti-graft agency has already launched a separate investigation into the allegations.

AirAsia said in its Saturday statement that it had not been involved with the SFO’s investigation of Airbus or given any opportunity to provide clarification. It denied any wrongdoing.

Reached for comment by Reuters on Sunday, the company pointed to the statement that said it would fully cooperate with “relevant authorities where required”. Airbus said it had no comment.

AirAsia, Asia’s largest budget airline group, runs an all-Airbus fleet of 274 planes.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment