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CORRUPTION

Airbus chief warns of ‘significant penalties’ from bribery probes

Airbus CEO Tom Enders warned on Friday that the aircraft manufacturer could face "significant penalties" relating to ongoing corruption probes including one into the sale of fighter jets to Austria.

Airbus chief warns of 'significant penalties' from bribery probes
Airbus CEO Tom Enders. Photo: Aurore Belot/AFP

“We are currently being investigated for alleged breaches of anti-bribery and anti-corruption laws,” Enders wrote in a letter to employees seen by AFP.

“We are in this situation because we decided last year to disclose the issues we had ourselves uncovered to government authorities and investigation agencies,” he said, adding: “This was the right course of action.”

“This is going to be a long process and there are potentially serious consequences – including significant penalties to the company,” Enders said.

An Airbus business unit in Paris reportedly built a network of shell companies linked to London-based Vector Aerospace, formerly the group's aircraft maintenance subsidiary.

Its system allowed the group to make “bribes to decision-makers in Austria” while Vienna was considering its purchase of Eurofighter military jets, German news magazine Der Spiegel reported Friday, culminating in a 15-aircraft deal worth about €1.7 billion ($2 billion).

Inquiries have also been opened in France and Britain, on suspicion of corruption in Airbus's UK-based civil aviation arm.

Without citing sources, Der Spiegel also reported that prosecutors were “preparing charges” against unidentified suspects over the Austria case.

“Internal investigators stumbled across more than 100 possibly corrupt payments in the three-digit millions,” the magazine reported, citing anonymous sources.

But Hildegard Baeumler-Hoesl, a state prosecutor in Munich, told AFP earlier Friday that investigators had “little evidence so far of corruption”.

Bavarian investigators have been looking into the Airbus since 2012, and the corruption probe over the sale of jets to Austria will “soon be over,” she said.

An Airbus spokesperson told AFP that the Spiegel report was “not based on any declaration or disclosure by the public prosecutor.”

Austrian authorities are also investigating Airbus after bringing charges in February, claiming the company paid out 183 million to €1.1 billion in under-the-table “commissions”.

Austrian Defence Minister Hans Peter Doskozil accused Airbus and the Eurofighter consortium deliberately misleading Vienna about the purchase price, delivery times and technical equipment of the 18 Eurofighter jets.

Last month, Airbus denied the accusations, with a lawyer for the company calling them “factitious and legally groundless”.

“As the process unfolds we are likely to face frequent media coverage,” Enders said in his letter to employees, while also warning against “leaks and attempts by individuals with vested interests to discredit top management by spreading false allegations.”

“In other words, prepare for turbulent and confusing times,” he wrote.

AUSTRIA

Today in Austria: A round-up of the latest news on Friday

Find out what's going on today in Austria with The Local's short roundup of the news.

Person getting vaccinated
AFP/ALEX HALADA

Extra doses of vaccine to come to Austria

Austria will receive 198,815 additional doses of Biontech Pfizer vaccine doses, after the EU purchased an extra 10 million for member states, Der Standard newspaper reports. Austria had hoped the EU would give it even more extra doses to make up for AstraZeneca delivery problems which means it may fall behind in vaccination this year. 

No Austria-wide lockdown for now, says Kurz

The lockdown in the eastern states of Austria will stay limited to these regions for the time being, Chancellor Kurz  said on Thursday.  He said the country’s intensive care units, showed big differences between regions. States should help each other in the admission of intensive care patients, the Wiener Zeitung newspaper reports. 

Record deficit in Austria 

The pandemic has driven the deficit in Austria  to a record level of 8.9 percent of GDP in 2020. The €33.2 billion missing from the state budget, is the highest deficit since records began in 1954. The national debt ratio also rose in 2020 by 13.4 percent to  83.9 percent of economic output, it reports. Preliminary results from Statistics Austria show government spending rose by 12.6% or €24.4 billion compared to 2019 to a total of €217.4 billion, the Wiener Zeitung newspaper reports. 

Unemployment fell in March

Unemployment fell significantly in March, but is still at a high level. At the end of March, 457,817 people were registered as unemployed or in AMS training, 51,106 fewer than last February and 104,705 fewer than in March 2020. The unemployment rate at the end of March was 9.4%, a decrease of 1.3 percentage points compared to February and 2.9 percentage points compared to March 2020, the Wiener Zietung newspaper reports 

E-moped sharing scheme comes to Vienna

A new e-moped sharing has been available in Vienna since Thursday. The Go Sharing company starts renting its e-mopeds. Initially the fleet will comprise 200 vehicles, by the end of the year 500 of the green-painted mopeds should be on the road, broadcaster ORF reports. 

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