Sri Lanka to probe Airbus bribe allegations

Sri Lankan President Gotabaya Rajapaksa on Sunday ordered a comprehensive probe into a multi-billion dollar aircraft purchase involving the national carrier SriLankan Airlines and Europe-based Airbus.

A statement from the Sri Lankan President's office said the President reacted to the media reports alleging financial irregularities.

"Upon seeing these reports President Rajapaksa immediately ordered officials to initiate a full scale inquiry into these allegations, covering all aspects of the deal and report back to him," the statement said.

The president has ordered a comprehensive investigation into reports of allegations over financial irregularities said to have been committed during the deal between SriLankan Airlines and Airbus SE for the purchase of aircraft.

Accorrding to a statement issued on January 31 in a court case in London, as part of the Deferred Prosecution Agreement reached between Airbus and the prosecuting authorities, Airbus had agreed to pay a sum of USD 16.84 million to a company registered in Brunei under the wife of an executive at SriLankan Airlines.

The statement said that the Airbus had paid out a sum of USD 2 million of the agreed amount to the company.

"Between July 1, 2011 and June 1, 2015, Airbus SE failed to prevent persons associated with Airbus SE from bribing others concerned with the purchase of aircraft by SriLankan Airlines from Airbus, namely directors and/or employees of SriLankan Airlines, where the said bribery was intended to obtain or retain business or advantage in the conduct of business for Airbus SE," the statement noted.

UK prosecutors said Airbus failed to prevent individuals associated with the company from bribery involving Malaysia's AirAsia and AirAsia X, SriLankan Airlines, Taiwan's TransAsia Airways, Garuda Indonesia and Citilink Indonesia.