Airbus (AIR.PA) was plunged deeper into legal wrangling over past business dealings on Wednesday when Vienna prosecutors announced a fraud investigation into its chief executive in connection with a $2 billion (1.56 billion pounds) fighter order over a decade ago.
Airbus called the accusations against CEO Tom Enders “completely unsubstantiated” after Reuters exclusively revealed the investigation, which came to light in correspondence seen by the news agency and confirmed by Vienna prosecutors.
For the second time in two months, Airbus seemed taken aback by the latest developments in a longstanding row over the Eurofighter deal, which has spawned numerous investigations that now coincide with separate probes in other countries of its passenger jet sales.
In February, Vienna prosecutors opened a criminal investigation into Airbus and the Eurofighter consortium after the defence ministry said it believed they had misled Austria about the price, deliverability and equipment of the 2003 deal.
That investigation now involves 16 individuals including Enders, according to a list seen by Reuters.
“Upon our inquiry after initial media reports, the Vienna prosecutor this afternoon informed us for the first time that all individuals, who have been mentioned by the Republic of Austria in its statement of alleged facts, … are under investigation,” an Airbus spokesman said by email.
“This list of individuals includes, among others, Tom Enders. As we have repeatedly stated, we consider the accusations as completely unsubstantiated.”
Enders and Airbus, which was called European Aeronautic, Defence and Space Company (EADS) at the time the fighter jet order was agreed, have repeatedly denied any wrongdoing.
Enders, a 58-year-old German, was head of EADS’s defence division when the contract was signed. He took responsibility for combat aircraft a few months later.
The Eurofighter consortium, which comprises BAE Systems (BAES.L), Italy’s Leonardo (LDOF.MI) and Airbus, has also denied any wrongdoing.
Airbus shares fell as much as 1.1 percent after Reuters reported the probe into Enders, before closing unchanged.
Source: Reuters
The post Austria investigates Airbus CEO over suspected fraud appeared first on Compliancex.
April 27, 2017 at 07:46PM
from The Compliance Exchange
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