38.6c New Delhi, India, Friday, March 29, 2024
Business

Airbus Faces Highest Ever Fine Of $4 Billion Following Bribery Probe

By LawStreet News Network      29 January, 2020 06:01 PM      0 Comments
Airbus Faces Highest Ever Fine Of $4 Billion Following Bribery Probe

Following a crippling three-year probe into allegations of bribery and corruption over jetliner sales, Airbus has unveiled a preliminary deal with French, British and U.S. authorities which, pending approval by courts will cost the commercial jet market giant approximately $4 billion in fines as reported on January 28, 2020.

Court hearings in France, Britain and the United States are expected to take place on January 31, 2020. The deal, if approved by courts is expected to allow Airbus to avoid criminal charges that risked banning the company from public contracts in the United States and European Union. 

Announcing the tentative agreement, Airbus said that it would add a provision of 3.6 billion Euros ($3.96 billion) in its 2019 earnings if the deal wins approval. 

The European planemaker faced U.S. investigations over suspected violations of export controls. The French and British authorities have been investigating the company for suspected corruption over jet sales dating back over a decade. 

Anti-corruption experts believe that the deal is the largest ever bribery case. Vertical Research Partners' Analyst Rob Stallard reportedly said, “Sorting out the fraud investigation is likely to remove a major overhang for the company”. As Airbus faced uncertainty over the fines, other noted plans for a new share buyback have been postponed.

Britain’s Serious Fraud Office (SFO) launched its probe in August, 2016 which was followed seven months later by France’s Parquet National Financier (PNF) after the firm alerted regulators to misleading and incomplete declarations made to Britain’s export credit agency over payments to sale agents. The firm employs more than 130,000 people globally, including about 10,000 in the UK. It asked the regulator to look at documentation about its use of overseas agents. The U.S. Department of Justice has signaled a close interest in the bribery affair while mainly allowing Britain’s SFO to take the lead, people familiar with the matter say. 

Whether or not will individual prosecutions result due to the deal is unclear as corporate plea bargains do not cover the same. Individual prosecutions were abandoned by Britain’s SFO over the Rolls-Royce case last year. 

Airbus, in order to improve its chances of winning a U.S.-style deferred prosecution agreement (DPA), acted to clear out its senior ranks. In a landmark 2017 ruling, a British judge had described Rolls-Royce as “dramatically changed” with a new leadership and culture. This ruling set a bar for future settlements.

More than 100 people have been fired by Airbus over ethics and compliance issues as a result of its own probe into the allegations. Former CEO Tom Enders left last year. He had to face criticism over his handling of the corruption allegations. 

Author: Shubham Jindal



Share this article:

User Avatar
About:


Leave a feedback about this
TRENDING NEWS

arvind-kejriwals-plea-for-interim-release-rejected-by-delhi-high-court
Trending Judiciary
Arvind Kejriwal's plea for interim release rejected by Delhi High Court [Read Order]

Delhi High Court rejects Arvind Kejriwal's plea for interim release in money laundering case related to liquor policy scam, pending ED's response.

28 March, 2024 10:50 AM
youtuber-strings-plea-against-youtube-accounts-suspension-andhra-pradesh-hc-issues-notice-to-centre-google
Trending Top Stories
BREAKING: Youtuber String’s plea against Youtube accounts suspension: Andhra Pradesh HC issues notice to Centre, Google

Andhra Pradesh High Court issues notice to the Centre and Google LLC on Youtube journalist String’s plea against suspension of its accounts by Google (which owns Youtube).

28 March, 2024 11:26 AM

TOP STORIES

delhi-liquor-scam-court-remands-arvind-kejriwal-to-ed-custody-till-march-28-read-remand-application
Trending Judiciary
Delhi liquor scam: Court remands Arvind Kejriwal to ED custody till March 28 [Read Order]

Delhi liquor scam: Arvind Kejriwal remanded to ED custody till March 28. Court grants agency permission for interrogation in liquor policy case.

23 March, 2024 11:53 AM
sc-dismisses-centres-plea-for-review-of-judgment-directing-ed-to-furnish-written-grounds-of-arrest-to-pmla-accused
Trending Judiciary
SC dismisses Centre’s plea for review of judgment directing ED to furnish written grounds of arrest to PMLA accused [Read Order]

Supreme Court dismisses Centre's plea, upholds judgment mandating Enforcement Directorate to provide written grounds of arrest in PMLA cases.

23 March, 2024 03:14 PM
kerala-hc-to-hear-lesbian-couples-plea-against-forced-conversion-therapy-on-april-9
Trending Judiciary
Kerala HC to hear lesbian couple’s plea against forced conversion therapy on April 9

Kerala HC will hear a lesbian couple’s plea highlighting that one of them was subjected to forced conversion therapy.

23 March, 2024 03:30 PM
how-can-people-be-compelled-to-vote-madras-hc-asks
Trending Judiciary
“How can people be compelled to vote? Madras HC asks

“How can people be compelled to vote?”, the Madras HC queried in a plea asking employers in Tamil Nadu to demand proof from employees of having voted on polling day.

23 March, 2024 05:04 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email