Malaysia to investigate claims related to Airbus sponsorship of racing team owned by AirAsia execs

KUALA LUMPUR: Malaysia's anti-graft agency is investigating British allegations that Airbus paid a bribe of US$50 million to win plane orders from the budget carrier AirAsia, it said on Saturday.

Prosecutors with Britain’s Serious Fraud Office (SFO) said on Friday that Airbus had failed to prevent individuals associated with the company from engaging in bribery involving AirAsia Group and its long-haul unit AirAsia X.

Airbus on Friday agreed to a record US$4-billion settlement with France, Britain and the United States, after prosecutors said it had bribed public officials and hid the payments as part of a pattern of worldwide corruption.

The disclosures, made public after a nearly four-year investigation spanning sales to more than a dozen overseas markets, came as courts on both sides of the Atlantic formally approved settlements with Europe’s largest aerospace group.

“Under the Malaysian Anti-Corruption Commission (MACC) Act we are empowered, and have jurisdiction, to investigate any act of corruption committed by any Malaysian citizen or permanent resident in any place outside Malaysia,” MACC Chief Commissioner Latheefa Koya said in a statement on Saturday.

“In the case of the Airbus-AirAsia disclosures, I confirm that the MACC is in touch with the UK authorities and is already investigating the matter.”

The SFO allegations concern a 2012 sponsorship agreement between the Caterham Formula 1 racing team and EADS, which was the parent of Airbus at the time.

The SFO said Airbus had bribed two of the carrier’s executives for a deal to buy 180 planes.

AirAsia officials have strongly denied any wrongdoing.

“The entering into of each aircraft purchase agreement was never made by any single individual decision, but instead arrived at through careful evaluation, deliberation and the collective decision of the board members after taking into account technical specifications, aircraft flight performance and operating economics,” the carrier said in a statement released late Saturday.

“We also wish to emphasise that all negotiations and dealings leading to the signing of any aircraft purchase agreement have been undertaken directly with Airbus on an arm’s length basis, and without the involvement of any third parties or intermediaries.”

Airbus did not immediately respond to an email seeking comment.