Airbus CEO warns of significant fines over corruption probe
Reuters|
Updated: Oct 13, 2017, 05.13 PM IST
PARIS: Airbus Chief Executive Tom Enders reiterated on Friday the group could face significant fines as the result of UK and French corruption investigations into the use of middlemen in plane sales.
"I cannot predict the outcome of this investigation but it is not impossible that the fine will be significant," Enders told Le Monde in an interview.
"We know that all this is weighing on the company but we have no alternative."
Britain and France have pledged to co-operate in their investigations, which were launched after Airbus disclosed anomalies last year in past filings on the use of agents.
It also faces an Austrian probe over a 2003 fighter sale.
Enders told Le Monde he was not aware of any investigation being carried by the U.S. Department of Justice.
Airbus is also conducting its own internal investigation in the hope of being offered a deal by UK prosecutors as a reward for co-operation and sharing results with investigators.
Legal experts say any settlement could cost significantly more than the roughly 700 million pounds paid by Rolls-Royce under a similar deal earlier this year.
Speaking separately to Le Monde, Airbus Chairman Denis Ranque said the board was mindful of the fact that a conviction could cost Airbus, a major defence and space supplier, access to public markets.
"The consequences of such a scenario would be very heavy. Full and utter co-operation is the only path possible," he said.
People familiar with the matter have said the size of sums involved in the probe, spread over dozens of deals, and mounting internal tensions have generated alarm at board level.
The board expressed full trust and confidence in Enders on Thursday, but two people familiar with the matter said it only did so after commissioning its own study of top management.
Le Monde said the board had appointed its own lawyers and that Ranque had declined to confirm or deny this.
Two people with knowledge of the move said the board has also recently hired head hunters. One of the people said, however, that this was part of a normal talent review.
Enders earlier this year announced his intention to renew his three-year mandate in 2016.
"I cannot predict the outcome of this investigation but it is not impossible that the fine will be significant," Enders told Le Monde in an interview.
"We know that all this is weighing on the company but we have no alternative."
Britain and France have pledged to co-operate in their investigations, which were launched after Airbus disclosed anomalies last year in past filings on the use of agents.
It also faces an Austrian probe over a 2003 fighter sale.
Enders told Le Monde he was not aware of any investigation being carried by the U.S. Department of Justice.
Airbus is also conducting its own internal investigation in the hope of being offered a deal by UK prosecutors as a reward for co-operation and sharing results with investigators.
Legal experts say any settlement could cost significantly more than the roughly 700 million pounds paid by Rolls-Royce under a similar deal earlier this year.
Speaking separately to Le Monde, Airbus Chairman Denis Ranque said the board was mindful of the fact that a conviction could cost Airbus, a major defence and space supplier, access to public markets.
"The consequences of such a scenario would be very heavy. Full and utter co-operation is the only path possible," he said.
People familiar with the matter have said the size of sums involved in the probe, spread over dozens of deals, and mounting internal tensions have generated alarm at board level.
The board expressed full trust and confidence in Enders on Thursday, but two people familiar with the matter said it only did so after commissioning its own study of top management.
Le Monde said the board had appointed its own lawyers and that Ranque had declined to confirm or deny this.
Two people with knowledge of the move said the board has also recently hired head hunters. One of the people said, however, that this was part of a normal talent review.
Enders earlier this year announced his intention to renew his three-year mandate in 2016.
