Securities Commission to look into AirAsia bribery allegations

The Securities Commission Malaysia chairperson Syed Zaid Albar has confirmed that his organisation will look into revelations that AirAsia and AirAsia X executives were allegedly among those who received bribes from European aircraft manufacturer Airbus.

"The statement of facts in the case of Regina vs Airbus SE discloses several allegations against AirAsia Group Bhd and AirAsia X Bhd.

"As both are listed on Bursa Malaysia, the Securities Commission Malaysia (SC) will examine the allegations and review all available evidence to determine if there is any breach of securities laws," said Syed Zaid (photo) in a statement today.

"Under s317A of the Capital Markets & Services Act 2007 (CMSA), a director of a public listed company (PLC) who does anything with the intention of causing wrongful loss to the PLC or its related corporation commits an offence which is punishable with imprisonment and fine," he added.

This announcement follows a report by UK newspaper The Telegraph which cited court documents that allegedly mentioned two “unnamed executives” at AirAsia and AirAsiaX as being among those who allegedly received bribes from Airbus in order to secure contracts.

The report said the airlines later ordered 180 aircraft from Airbus and the two unnamed executives were “rewarded in respect of the aircraft order”, which was “secured by way of improper payments”, as described by the court documents.

The report also said Airbus paid US$50 million and offered another US$55 million to sponsor a sports team linked to two executives described as “key decision-makers” at AirAsia and AirAsiaX.

AirAsia has denied any wrongdoing in the case and allegations that its directors and/or employees were recipients of the bribes.