Securites Commission Malaysia confirms probe into AirAsia, AirAsia X corruption claims

Earlier today, it was reported that Airbus has taken significant steps to reform itself and to ensure that this conduct will not recur. Source (pic): The Edge Markets

سوروهنجاي سكوريتي مليسيا سهكن سياستن رسواه ايراسيا، ايراسيا ايك س

The Securities Commission Malaysia (SC) appears to have taken a cue from the Malaysian Anti-Corruption Commission (MACC) lead, confirming that it would look into allegations of corruption involving AirAsia and AirAsia X.

SC chairman Syed Zaid Albar said the statement of facts in the case of Regina vs Airbus SE discloses several allegations against AirAsia Group Bhd and AirAsia X Bhd. 

“As both are listed on Bursa Malaysia, the Securities Commission Malaysia (SC) will examine the allegations and review all available evidence to determine if there is any breach of securities laws,” said Syed Zaid (photo) in a statement today.

“Under s317A of the Capital Markets & Services Act 2007 (CMSA), a director of a public listed company (PLC) who does anything with the intention of causing wrongful loss to the PLC or its related corporation commits an offence which is punishable with imprisonment and fine,” he added.


PETALING JAYA: The Securities Commission Malaysia (SC) appears to have taken a cue from the Malaysian Anti-Corruption Commission (MACC) lead, confirming that it would look into allegations of corruption involving AirAsia and AirAsia X.

Yesterday, TTF carried a report in which it was alleged that European aerospace corporation Airbus had bribed officials at AirAsia and AirAsia X a sum of US$50 million (about RM204.8 million) to secure lucrative contracts to supply aircraft to the Southeast Asian budget carriers.




According to The Edge Markets, the funds were used to sponsor an unnamed sports team jointly owned by two individuals identified as AirAsia Executive 1 and AirAsia Executive 2, but was legally unrelated to both airlines.

“Between October 2005 and November 2014, AirAsia and AirAsia X ordered 406 aircraft from Airbus, including 180 aircraft secured during the indictment period by way of improper payment (made by EADS France SAS, later Airbus Group SAS), and the offer of a further improper payment.

“The improper payment consisted of $50 million (and Airbus employees also offered but did not pay an additional $55 Million) paid to directors and/or employees of AirAsia and AirAsia X airlines as sponsorship for a sports team.

“The sports team was jointly owned by AirAsia Executive 1 and AirAsia Executive 2 but was legally unrelated to AirAsia and AirAsia X. The additional improper payment was prevented by the October 2014 freeze on payments to BPs [business partners]…” said the documents.

Earlier today, it was reported that Airbus has taken significant steps to reform itself and to ensure that this conduct will not recur.

In a statement, the European plane maker said it has significantly enhanced its compliance system under the supervision of an Independent Compliance Review Panel.

The report stated that Airbus had reached final agreements with the French Parquet National Financier (PNF), the UK Serious Fraud Office (SFO), and the US Department of Justice (DoJ) resolving the authorities’ investigations into allegations of bribery and corruption.

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It has also reached final agreements with the U.S. Department of State (DoS) and the DoJ to resolve their investigations into inaccurate and misleading filings made with the DoS pursuant to the U.S. International Traffic in Arms Regulations (ITAR).

Meanwhile, SC chairman Syed Zaid Albar said the statement of facts in the case of Regina vs Airbus SE discloses several allegations against AirAsia Group Bhd and AirAsia X Bhd.

“As both are listed on Bursa Malaysia, the Securities Commission Malaysia (SC) will examine the allegations and review all available evidence to determine if there is any breach of securities laws,” said Syed Zaid (photo) in a statement today.

“Under s317A of the Capital Markets & Services Act 2007 (CMSA), a director of a public listed company (PLC) who does anything with the intention of causing wrongful loss to the PLC or its related corporation commits an offence which is punishable with imprisonment and fine,” he added.

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