Up to the investigators to determine whether it is a bribe or not, says PMO

PRIME Minister Tun Dr Mahathir Mohamad has clarified that he did not suggest allegations of bribery against AirAsia involved offset payments.

“In answering to questions by the press, he pointed out that it is normal for the government to request for offset to benefit from big purchases.

“He did not say that AirAsia was benefiting from this normal practice. He said that only if the money goes to individuals that it becomes a bribe. If it is not for personal benefit then it is not a bribe in his view. It is up to the investigators to determine whether it is a bribe or not,” according to a statement from the Prime Minister’s Office on Feb 7.

The PMO was responding to reports in the media alluding to the prime minister suggesting allegations of bribery against AirAsia as being offset payments.

Mahathir was quoted as saying that requesting for an offset is part and parcel of any business transaction and does not constitute a bribe if the money is not pocketed for personal gain.

He had added that asking for an offset was even common when the government procured any equipment.

Citing UK court documents, FocusM reported on Feb 1 that directors and/or employees of AirAsia Group Bhd (AAGB) and AirAsia X Bhd (AAX) were allegedly the recipients of a US$50 mil (RM205 mil) bribe from Airbus.

According to British prosecutors from the Serious Fraud Office (SFO), Airbus paid the sum to sponsor a sports team jointly owned by two unnamed AirAsia executives in Malaysia. Airbus allegedly made the payment to secure an order for 180 aircraft.

The documents also said Airbus employees also attempted to pay an additional US$55 mil to the directors and/or employees of AAGB and AAX but were prevented by an October 2014 freeze on payments to agents and intermediaries.

Below is the statement in full:

Prime Minister YAB Tun Dr Mahathir bin Mohamad clarifies that at no point did he suggest allegations of bribery against AirAsia as offset payments. 

In answering to questions by the press, he pointed out that it is normal for the government to request for offset to benefit from big purchases. He did not say that AirAsia was benefiting from this normal practice. He said that only if the money goes to individuals that it becomes a bribe. If it is not for personal benefit then it is not a bribe in his view. 

It is up to the investigators to determine whether it is a bribe or not. 

Reports in the media alluding to the Prime Minister suggesting allegations of bribery against AirAsia as being offset payments is therefore inaccurate and misleading. 

The Prime Minister’s Office views seriously such misleading reports and reports that do not accurately reflect what is said by the Prime Minister. 

The Prime Minister’s Office therefore wish to advise the media to be more sensitive as misleading reports could have undesirable consequences on the public’s understanding of issues. 

PRIME MINISTER’S OFFICE PUTRAJAYA 7 FEBRUARY 2020

Press Statement Prime Minister Office – Media Clarification On AirAsia Allegation (7 February 2020)

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