Airbus under criminal investigation
08.08.2016,
12:28
The UK's Serious Fraud Office has launched an investigation into allegations of "fraud, bribery and corruption" in the civil aviation business of Airbus, BBC News reports.
YEREVAN, August 8. /ARKA/. The UK's Serious Fraud Office has launched an investigation into allegations of "fraud, bribery and corruption" in the civil aviation business of Airbus, BBC News reports.
The allegations relate to irregularities concerning third party consultants.
The France-based aircraft manufacturer said it was co-operating with the probe, which was launched last month.
According to The Wall Street Journal, the U.K. government disclosed in April that it was seeking information from Airbus over how it used overseas agents.
It said at the time it was assessing whether to launch a formal, fraud probe. The company disclosed at the time it had submitted flawed information for export credit financing applications to U.K. Export Finance, the government agency that provides financial backing to some of the European plane maker’s deals.
That government organization referred the information to the SFO to determine if further action is required.
U.K. Export Finance is quoted by The Wall Street Journal as saying at the time, that it was “seeking assurances around Airbus’s current practice with regard to overseas agents.” The use of such agents is permitted, but needs to be fully disclosed, the government office said.
Airbus has been cut off from export credit financing in the U.K. amid the review. U.K. Export Finance said it hoped to conclude the review quickly, without saying how long financing support would be suspended.
That has been a drag on cash flow, and Airbus executives have said they are working with the agency to restore credit financing. That process is separate from the fraud investigation. --0---
The allegations relate to irregularities concerning third party consultants.
The France-based aircraft manufacturer said it was co-operating with the probe, which was launched last month.
According to The Wall Street Journal, the U.K. government disclosed in April that it was seeking information from Airbus over how it used overseas agents.
It said at the time it was assessing whether to launch a formal, fraud probe. The company disclosed at the time it had submitted flawed information for export credit financing applications to U.K. Export Finance, the government agency that provides financial backing to some of the European plane maker’s deals.
That government organization referred the information to the SFO to determine if further action is required.
U.K. Export Finance is quoted by The Wall Street Journal as saying at the time, that it was “seeking assurances around Airbus’s current practice with regard to overseas agents.” The use of such agents is permitted, but needs to be fully disclosed, the government office said.
Airbus has been cut off from export credit financing in the U.K. amid the review. U.K. Export Finance said it hoped to conclude the review quickly, without saying how long financing support would be suspended.
That has been a drag on cash flow, and Airbus executives have said they are working with the agency to restore credit financing. That process is separate from the fraud investigation. --0---
