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Airbus to pay SFO €1bn in corruption settlement

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Airbus

Airbus will pay nearly €1bn (£840m) to settle corruption cases with UK authorities.

The deal follows a lengthy investigation by the Serious Fraud Office (SFO) into the aircraft maker’s use of middlemen to secure plane deals.

The settlement is part of a €3.6bn (£3bn) deal that also involves payments to US and French authorities.

The payments are being made under a deferred prosecution agreement (DPA) – a type of corporate plea bargain.

The French national prosecutor, the Parquet National Financier, (PNF), will receive about €2.1bn, while Airbus will also pay the US Department of Justice some €500m.

The settlement was announced earlier this week and was approved by courts in the three countries on Friday.

The European planemaker, based in Toulouse in south-west France, employs more than 130,000 people globally, including about 10,000 in the UK.

The SFO, and later its French counterpart, opened investigations into Airbus in 2016 after the firm reported itself and asked regulators to look at documentation about its use of overseas agents.

Export credits

In the run-up to the SFO’s investigation, UK, French and German authorities froze export credit applications by Airbus, but reversed that decision in 2018.

Export credits are used by many governments to support exporters, often by giving their backing to bank loans offered to overseas buyers of UK products.

In the past, they have proved useful in giving cash-strapped airlines the ability to afford new Airbus planes.

The investigations followed concern that Airbus had failed to disclose the use of middlemen in such deals.

The US also requested information from the UK and French investigations, amid suspicions that arms export rules could have been violated.

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By Laura Price

Laura is the senior writer and Smartphones section editor responsible for managing software updates and smartphones section. She is very passionate about Gadgets & Technology and always looking around to use them in an innovative way in daily life. She reviews Gadgets & Applications to tell users about their optimum use to get the most out of in which they’ve put their time and hard earned money.
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