Bribery probe over Airbus cash paid to foreign fixers
PLANE-maker Airbus is being investigated for bribery and corruption over alleged irregularities in the way taxpayer-backed funds may have been used to pay middlemen.
The Serious Fraud Office is probing the passenger jet division of firm, which has two plants producing wings in the UK.
Airbus was informed about the criminal investigation on Friday. The probe will look at payments made to consultants who brokered deals with potential customers in new markets.
Although Airbus is based in France, UK authorities are involved because Britain’s rules on bribery and corruption are tougher than Europe’s.
Also, it involves British money, as Airbus claims an export credit awarded by the Government.
Such payments have now been frozen by the UK, France and Germany.
Intermediaries are used by firms looking to break into new markets.
Companies tap the intermediaries for their local knowledge and contacts, before they invest in setting up their own local offices.
The payments made to the local fixers are heavily regulated and firms such as Airbus have a responsibility under the Bribery Act in the UK and the Foreign Corrupt Practices Act in America to closely scrutinise the activities of these partners.
The use of local consultants has tripped up other firms. BAE Systems has been the subject of an SFO probe and Rolls-Royce is under investigation.
The Serious Fraud Office said: ‘The director of the Serious Fraud Office has opened a criminal investigation into allegations of fraud, bribery and corruption in the civil aviation business of Airbus Group.’
A spokesman for Airbus said: ‘Airbus Group has been informed by the SFO that it has opened a criminal investigation into allegations of fraud, bribery and corruption in the civil aviation business of Airbus Group relating to irregularities concerning third party consultants. Airbus Group continues to co-operate with the SFO.’
Airbus admitted in April that it had spoken to the SFO and asked whether it had broken any laws.