Airbus ordered to pay $99m fine in Eurofighter case

European aircraft manufacturer Airbus on February 9 said it had agreed to pay a fine of 81.25 million euros ($99 million) to end a German corruption probe into the 2003 sale of Eurofighter jets to Austria. (AFP)
Updated 09 February 2018
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Airbus ordered to pay $99m fine in Eurofighter case

FRANKFURT: German prosecutors have ordered Airbus to pay 81.25 million euros ($99 million) to settle one of two investigations into alleged corruption surrounding the sale of Eurofighter combat jets to Austria in 2003, the two sides said on Friday.
The settlement includes an administrative fine of 250,000 euros and “disgorgement” — which legal experts broadly define as the recovery of ill-gotten gains — of 81 million euros.
Munich prosecutors have been investigating whether Airbus issued bribes to win the $2 billion contract: charges it denies.
In a statement, prosecutors said they had not found evidence of bribery but that Airbus had been unable to account for over 100 million euros in payments to two shell companies.
EADS, as the main Airbus parent group was known at the time, sent funds totalling a triple-digit-million euro amount to Vector Aerospace LLP and City Chambers Limited, they added.
Most of these funds, by evading internal control mechanisms, had been used for what the prosecutors said were “unclear purposes,” adding it could not be finally determined what the funds had been spent on.
Airbus said in a statement the penalty, which it had agreed to pay, related to the “negligent breach of supervisory duties” by unidentified members of Airbus Defense and Space’s former management.
The former managers failed to ensure proper controls that would have prevented payments to “business partners” without the company getting proven services in exchange.
Airbus regularly uses the term “business partners” to refer to foreign sales agents or intermediaries.
It is being investigated separately in France and Britain over the handling of agents in the sale of commercial jets.
While Friday’s settlement ends the Munich investigation, Airbus and individuals including Chief Executive Tom Enders, who headed the company’s defense business from 2000 to 2005, face an ongoing investigation in Vienna into the Eurofighter deal.
Airbus and Enders have denied wrongdoing and accused the Austrian government of playing politics with the investigation.


Saudi banks see no significant impact from lira depreciation

Updated 18 min 10 sec ago
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Saudi banks see no significant impact from lira depreciation

  • National Commercial Bank, Saudi Arabia’s largest bank by assets, earlier on Thursday said there was limited impact from the decline of the lira on the bank

DUBAI: There has been no significant impact from the depreciation of the Turkish lira on the results and quality of Saudi Arabian bank assets, Talaat Hafez, spokesman for Saudi banks, was quoted as saying in a tweet carried by the kingdom’s state TV Alekhbariya on Thursday.
Earlier on Thursday National Commercial Bank, Saudi Arabia’s largest bank by assets, said there was limited impact from the decline of the lira on the bank.
The currency has lost nearly 40 percent against the dollar this year, driven by worries over Turkish President Tayyip Erdogan’s growing influence on the economy and his repeated calls for lower interest rates despite high inflation.