PMO CLARIFIES DR M’S REMARKS ON AIRASIA GRAFT ALLEGATIONS

‘PM did not suggest allegations of bribery against AirAsia as offset payments’

He (Dr Mahathir) said only if the money goes to individuals that it becomes a bribe.

PRIME MINISTER’S OFFICE

PRIME Minister Tun Dr Mahathir Mohamad has clarified that at no point did he suggest allegations of bribery against AirAsia as offset payments.

A statement from the Prime Minister’s Office said Dr Mahathir, in fielding questions from members of the press on Thursday, pointed out that it was normal for the government to request for offset to benefit from big purchases.

“He did not say that AirAsia was benefiting from this normal practice.

“He said only if the money goes to individuals that it becomes a bribe. If it is not for personal benefit, then it is not a bribe, in his view. It is up to the investigators to determine whether it is a bribe or not.”

The statement added that media reports alluding to the prime minister suggesting that allegations of bribery against AirAsia as being offset payments were therefore inaccurate and misleading.

“The Prime Minister’s Office views seriously such misleading reports and reports that do not accurately reflect what is said by the prime minister.

“The Prime Minister’s Office therefore wishes to advise the media to be more sensitive as misleading reports could have undesirable consequences on the public’s understanding of issues.”

Dr Mahathir was responding to reporters’ questions on AirAsia executives being implicated in corruption involving aircraft manufacturer Airbus SE.

The deferred prosecution agreement entered into by Airbus and the UK Serious Fraud Office (SFO) appeared to implicate AirAsia executives.

AirAsia Group Bhd and AirAsia X Bhd directors Tan Sri Tony Fernandes and Datuk Kamarudin Meranun, in a statement, categorically denied all allegations of wrongdoing or misconduct on their part as executives and directors of AirAsia with regard to the deferred prosecution agreement.

“Caterham F1, the company alleged to have been sponsored improperly by Airbus, was at the relevant time a Formula 1 Racing team that had gone round the globe promoting, among others, AirAsia, AirAsia X, GE and Airbus.

“Throughout the period we were shareholders in Caterham, the company made no profits and was eventually disposed [of] for £1 in 2014. From start to finish, this was a branding exercise and not a venture to make profits,” they said.

AirAsia X has since formed a board committee to review corruption allegations by SFO, it said in a filing with Bursa Malaysia.

Reuters reported the committee will comprise non-executive members of the board, excluding Kamarudin and Fernandes, the co-founders of its parent company, AirAsia Group.

AirAsia Group said on Monday it had also set up a committee to review the allegations and that chief executive officer Fernandes and chairman Kamarudin would step aside for at least two months while the airline and authorities investigate the allegations.

SFO had alleged last Friday that Airbus paid a bribe of US$50 million to executives linked to AirAsia and AirAsia X to win plane orders.