Malaysian securities regulator to probe AirAsia’s Airbus deal, Latest Business News - The New Paper

Malaysian securities regulator to probe AirAsia’s Airbus deal

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KUALA LUMPUR Malaysia's securities regulator said yesterday it will examine whether AirAsia Group and unit AirAsia X broke securities laws, after UK prosecutors accused executives of receiving bribes from Airbus for buying planes.

The allegations came to light on Friday when Airbus agreed a record US$4 billion (S$5.5 billion) settlement with France, Britain and the United States.

Prosecutors said it had bribed public officials and hidden payments as part of a pattern of worldwide corruption.

Britain's Serious Fraud Office (SFO) said on Friday that between October 2013 and January 2015, Airbus's then-parent EADS paid US$50 million to sponsor a sports team that was jointly owned by two people, described as AirAsia Executive 1 and Executive 2.

The SFO said the executives were rewarded for an aircraft order from Airbus, an allegation AirAsia denied late on Saturday.

"The Securities Commission Malaysia will examine the allegations and review all available evidence to determine if there is any breach of securities laws," Mr Syed Zaid Albar, the regulator's chairman, said in a statement.

Directors who act with the intent to cause wrongful loss to their listed firms can face jail or fines, he said.

The Malaysian Anti-Corruption Commission has launched a separate investigation into the allegations.- REUTERS