Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 23): AirAsia Bhd has denied wrongdoing after the UK alleged Rolls-Royce plc failed to prevent its employees from bribing an AirAsia executive with a US$3.2 million (about RM14 million) discount for the maintenance of a private jet, Financial Times reported yesterday.

Financial Times, quoting the UK’s Serious Fraud Office (SFO), budget airline AirAsia and aircraft-engine manufacturer Rolls-Royce, reported AirAsia group chief executive officer Tan Sri Tony Fernandes partly-owned the jet.

Financial Times quoted AirAsia as saying it had “followed all procedures” in obtaining credits from Rolls-Royce and that the private jet was used by the AirAsia’s executives for business travel, with the airline paying for operational and maintenance costs.

The SFO was quoted as saying the discount was given at an AirAsia executive's request, in return for his “showing favour” towards Rolls-Royce in the purchase of products and services.

The Financial Times report, quoting a message disclosed by the SFO, indicated that Rolls-Royce’s compliance department warned against providing the credits, saying Rolls Royce could not grant the AirAsia executive preferential rates on a personal aircraft, just because of the business transaction between both companies.

According to Financial Times, AirAsia’s denial came after Rolls-Royce admitted last week of a string of bribery and corruption offences stretching over 23 years, and a dozen countries, as part of a £671 million (about RM3.71 billion) settlement with authorities in the UK, U.S. and Brazil.

At Bursa Malaysia today, AirAsia shares fell as much as 19 sen or 7% to RM2.39, before settling at RM2.46 at 12:30pm. AirAsia, the third most active stock, was also the second-largest decliner.

AirAsia shares saw some 33 million shares transacted. At RM2.46, AirAsia has a market value of RM6.93 billion.

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