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UK conducts forensic probe into use of middlemen in shady Airbus deals
A CRIMINAL investigation into Airbus practices of using financial middlemen, often critical in closing aircraft sales in underway in the UK, reports Bloomberg.
Britain's Serious Fraud Office (SFO) said it was pursuing inquiries after Airbus reported what it deemed were questionable practices engaging middlemen, which still could result in fines for the French planemaker.
Securing finance in aircraft purchases is complex. Because setting up local offices can take years, it is faster to rely on local middlemen who have access to people making purchase decisions.
Paying for such intermediaries for overseas sales is not illegal, but can complicate oversight, said Bloomberg News.
In 2012, aircraft engine maker Rolls-Royce Holdings handed over details on what it called "matters of concern" uncovered in China and Indonesia. The following year, the SFO opened an investigation into whether Rolls-Royce engaged local agents in return for orders.
Airbus, which is based in Toulouse, said that it was cooperating with investigators. Airbus in April told British regulators and European export credit authorities of "misstatements and omissions" involving the outside contractors in some export financing applications, which it found through an internal probe.
Britain's Serious Fraud Office (SFO) said it was pursuing inquiries after Airbus reported what it deemed were questionable practices engaging middlemen, which still could result in fines for the French planemaker.
Securing finance in aircraft purchases is complex. Because setting up local offices can take years, it is faster to rely on local middlemen who have access to people making purchase decisions.
Paying for such intermediaries for overseas sales is not illegal, but can complicate oversight, said Bloomberg News.
In 2012, aircraft engine maker Rolls-Royce Holdings handed over details on what it called "matters of concern" uncovered in China and Indonesia. The following year, the SFO opened an investigation into whether Rolls-Royce engaged local agents in return for orders.
Airbus, which is based in Toulouse, said that it was cooperating with investigators. Airbus in April told British regulators and European export credit authorities of "misstatements and omissions" involving the outside contractors in some export financing applications, which it found through an internal probe.
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