Post by rickyqpr on Feb 3, 2020 10:00:36 GMT
ED sends summons to Air Asia CEO Tony Fernandes, senior executives
CEO Tony Fernandes and other managers of Air Asia are also being investigated by CBI on charges of criminal conspiracy under the Prevention of Corruption Act.
Published: 25th January 2020 10:25 AM | Last Updated: 25th January 2020 10:25 AM | A+A A-
The airline has denied any wrongdoing and was not immediately available for comments.The airline has denied any wrongdoing and was not immediately available for comments.By Express News Service
The Enforcement Directorate (ED) has issued fresh summons to senior executives of Air Asia airlines, including its CEO Tony Fernandes for questioning next month in a money laundering case after they did not turn up on January 20.
“We have issued fresh summons. He can appear between February 5 to February 10,” a senior ED official confirmed. The agency has also summoned R Venkataramanan, former director of Air Asia India, over allegations of money laundering. It has asked Venkataramanan to appear before it on February 10.
Venkataramanan was the Tata Sons nominee on the board of Air Asia India, a joint venture (JV) between the two entities. He stepped down as managing trustee of the Tata Trusts in March 2019 and later left Air Asia India.
The airline has denied any wrongdoing and was not immediately available for comments. Fernandes and other top managers of Air Asia are also being investigated by Central Bureau of Investigation (CBI) on charges of criminal conspiracy under the Prevention of Corruption Act.
CBI has registered a first information report (FIR) in May 2018 after which the ED has filed the case based on the FIR. Fernandes and top managers are already under probe by the agency on charges of criminal conspiracy. The CBI said the directors were involved in wrongdoing.
“The shareholders and Indian partners at the JV, including the board members, were not only aware of these intentions but also consciously violated the then FIPB norms,” the CBI FIR had said.
CBI probe in PMLA case
Fernandes and other managers of Air Asia are also being investigated by CBI on charges of criminal conspiracy under the Prevention of Corruption Act.
www.newindianexpress.com/business/2020/jan/25/ed-sends-summons-to-air-asia-ceo-tony-fernandes-senior-executives-2094279.html
AirAsia shares plunge after Airbus bribery allegations
UALA LUMPUR (Reuters) - Shares of Malaysia’s AirAsia Group (AIRA.KL) and unit AirAsia X (AIRX.KL) fell on Monday, after allegations by Britain’s Serious Fraud Office that Airbus (AIR.PA) paid a bribe of $50 million to win plane orders from Asia’s largest budget airline group.
AirAsia shares fell as much as 11% to 1.27 ringgit - their lowest since May 2016 - while those of AirAsia X tanked 12% to their all-time low of 11.5 Malaysian sen.
Malaysia’s anti-graft agency is investigating the allegations from Britain. AirAsia has said it never made any purchase decisions that were premised on Airbus sponsorship, and that it would fully cooperate with the Malaysian Anti-Corruption Commission (MACC).
Malaysia’s Securities Commission said on Sunday it would also examine whether AirAsia broke securities laws.
The allegations were revealed on Friday as part of a record $4 billion settlement Airbus agreed with France, Britain and the United States. Prosecutors said the company had bribed public officials and hidden payments as part of a pattern of worldwide corruption.
Airbus said at the weekend it would not comment on the Malaysian investigations.
Analysts said the accusation against AirAsia comes at a particularly bad time as airlines grapple with a slowdown in business because of the fast-spreading coronavirus epidemic that has killed more than 300 people in China and disrupted air travel.
“Besides being embroiled in this corruption scandal, we expect a tough operating environment to persist over the medium term with maintenance cost remaining high ... and concerns over the Wuhan virus outbreak which could derail propensity for air travel in the region,” Malaysia’s Kenanga Investment Bank wrote in a research note. TA Securities downgraded AirAsia Group stock to “sell” from “buy”.
“We choose the ‘sell first, ask questions later’ approach to avoid the uncertainty in association with the corruption investigation by MACC, where the impact on AirAsia could be significant in terms of corporate governance,” it said in a note.
www.reuters.com/article/us-airbus-probe-airasia-shares-idUSKBN1ZX043?taid=5e37906eebed6f0001a587ce&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter
CEO Tony Fernandes and other managers of Air Asia are also being investigated by CBI on charges of criminal conspiracy under the Prevention of Corruption Act.
Published: 25th January 2020 10:25 AM | Last Updated: 25th January 2020 10:25 AM | A+A A-
The airline has denied any wrongdoing and was not immediately available for comments.The airline has denied any wrongdoing and was not immediately available for comments.By Express News Service
The Enforcement Directorate (ED) has issued fresh summons to senior executives of Air Asia airlines, including its CEO Tony Fernandes for questioning next month in a money laundering case after they did not turn up on January 20.
“We have issued fresh summons. He can appear between February 5 to February 10,” a senior ED official confirmed. The agency has also summoned R Venkataramanan, former director of Air Asia India, over allegations of money laundering. It has asked Venkataramanan to appear before it on February 10.
Venkataramanan was the Tata Sons nominee on the board of Air Asia India, a joint venture (JV) between the two entities. He stepped down as managing trustee of the Tata Trusts in March 2019 and later left Air Asia India.
The airline has denied any wrongdoing and was not immediately available for comments. Fernandes and other top managers of Air Asia are also being investigated by Central Bureau of Investigation (CBI) on charges of criminal conspiracy under the Prevention of Corruption Act.
CBI has registered a first information report (FIR) in May 2018 after which the ED has filed the case based on the FIR. Fernandes and top managers are already under probe by the agency on charges of criminal conspiracy. The CBI said the directors were involved in wrongdoing.
“The shareholders and Indian partners at the JV, including the board members, were not only aware of these intentions but also consciously violated the then FIPB norms,” the CBI FIR had said.
CBI probe in PMLA case
Fernandes and other managers of Air Asia are also being investigated by CBI on charges of criminal conspiracy under the Prevention of Corruption Act.
www.newindianexpress.com/business/2020/jan/25/ed-sends-summons-to-air-asia-ceo-tony-fernandes-senior-executives-2094279.html
AirAsia shares plunge after Airbus bribery allegations
UALA LUMPUR (Reuters) - Shares of Malaysia’s AirAsia Group (AIRA.KL) and unit AirAsia X (AIRX.KL) fell on Monday, after allegations by Britain’s Serious Fraud Office that Airbus (AIR.PA) paid a bribe of $50 million to win plane orders from Asia’s largest budget airline group.
AirAsia shares fell as much as 11% to 1.27 ringgit - their lowest since May 2016 - while those of AirAsia X tanked 12% to their all-time low of 11.5 Malaysian sen.
Malaysia’s anti-graft agency is investigating the allegations from Britain. AirAsia has said it never made any purchase decisions that were premised on Airbus sponsorship, and that it would fully cooperate with the Malaysian Anti-Corruption Commission (MACC).
Malaysia’s Securities Commission said on Sunday it would also examine whether AirAsia broke securities laws.
The allegations were revealed on Friday as part of a record $4 billion settlement Airbus agreed with France, Britain and the United States. Prosecutors said the company had bribed public officials and hidden payments as part of a pattern of worldwide corruption.
Airbus said at the weekend it would not comment on the Malaysian investigations.
Analysts said the accusation against AirAsia comes at a particularly bad time as airlines grapple with a slowdown in business because of the fast-spreading coronavirus epidemic that has killed more than 300 people in China and disrupted air travel.
“Besides being embroiled in this corruption scandal, we expect a tough operating environment to persist over the medium term with maintenance cost remaining high ... and concerns over the Wuhan virus outbreak which could derail propensity for air travel in the region,” Malaysia’s Kenanga Investment Bank wrote in a research note. TA Securities downgraded AirAsia Group stock to “sell” from “buy”.
“We choose the ‘sell first, ask questions later’ approach to avoid the uncertainty in association with the corruption investigation by MACC, where the impact on AirAsia could be significant in terms of corporate governance,” it said in a note.
www.reuters.com/article/us-airbus-probe-airasia-shares-idUSKBN1ZX043?taid=5e37906eebed6f0001a587ce&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter