Story ID: GPairbusfraud08082016
UK Serious Fraud Office Launches Airbus Investigation
By: Gregory Polek
Caption: Charges related to “irregularities” involving sales intermediaries
Word Count: 331
The director of the UK Serious Fraud Office (SFO) has opened a criminal investigation into allegations of fraud, bribery and corruption in the civil aviation business of Airbus Group, the agency announced Monday. The allegations relate to irregularities concerning third-party consultants, it said.

Word on the possibility of investigation surfaced in April, when the SFO began looking into the manufacturer’s failure to reveal the identity of some intermediaries in applications for export credit financing for certain airline customers.

At the time Airbus issued a statement acknowledging “certain inaccuracies” in the applications and that an interruption in UK export funding would likely result. It said it immediately notified the SFO of its internal findings in the interest of transparency.

On Sunday it referred to “previous disclosures” relating to the SFO and European export credit agencies. “Airbus Group has been informed by the SFO that it has opened a criminal investigation into allegations of fraud, bribery and corruption in the civil aviation business of Airbus Group relating to irregularities concerning third-party consultants,” it confirmed. “Airbus Group continues to cooperate with the SFO.” Niether German nor French authorities have opened parallel fraud investigations because their laws do not require disclosure of the identities of third-party consultants.

In April Airbus said it expected no interruption in financing from the export credit agencies in France and Germany—the other European countries in which it builds most of its components and assembles airplanes. However, those countries subsequently cut off funding as well in cooperation with the UK agency.  Export credit accounted for some 6 percent of funding for Airbus airliners last year.  

A spokesperson from UK Export Finance (UKEF) would not comment on the SFO investigation, but confirmed that the agency “paused” its support for Airbus deliveries in April and had not funded any new deliveries since January. She added that UKEF continues to work closely with its French and German counterparts on the matter.