Airbus Subsidiary Pleads Guilty in Saudi Bribery Case -- 2nd Update
April 28 2021 - 4:37PM
Dow Jones News
By Dylan Tokar
A subsidiary of Airbus SE pleaded guilty in London to a
corruption charge stemming from a defense contract that the U.K.
arranged with Saudi Arabia, the U.K.'s Serious Fraud Office
said.
GPT Special Project Management Ltd. pleaded guilty on Wednesday
to one count of corruption in Southwark Crown Court, according to
the SFO, the U.K.'s prosecuting agency for major white-collar
crimes. A judge overseeing the case ordered GPT to pay GBP28
million ($38.9 million), plus GBP2.2 million in costs.
The guilty plea comes after the agency said in July that it was
charging GPT, along with its former managing director and a partial
owner of two of the company's subcontractors.
The corruption offense occurred between December 2008 and July
2010 in connection with contracts awarded to GPT for work carried
out for the Saudi Arabian National Guard, the SFO said.
An Airbus spokesman said the SFO's investigation related to
contractual arrangements originating prior to the company's
acquisition of GPT in 2007.
"The resolution reached by GPT today marks the final part of the
SFO's investigation into Airbus," the Airbus spokesman said in a
statement. "It is welcomed and allows the company to move forward
and focus on working with customers in these most challenging
times, in accordance with the highest ethical standards."
The case was a politically sensitive one for the U.K. It was
viewed as a potential threat to the country's relationship with a
key ally in the Middle East. A decision on the SFO's six-year
probe, which was opened in August 2012, languished for about two
years with the country's attorney general.
When questioned by U.K. anticorruption advocates about the delay
in 2019, the attorney general's office said the case was
particularly complex but declined to comment further.
In a statement Wednesday, Spotlight on Corruption, a U.K.
anticorruption group, called GPT's guilty plea a "stunning and
hard-won victory" for the SFO. But it called for a further
investigation by the U.K. Parliament into the role played by the
country's Defense Ministry in signing off on the bribes.
In a statement, a Defense Ministry spokeswoman said the agency
did not tolerate bribery and corruption.
Last year, Airbus agreed to pay a combined EUR3.6 billion ($4.2
billion) to prosecutors in France, the U.K. and the U.S. to settle
bribery and corruption allegations spanning its aerospace business
in more than a dozen countries. The allegations involving GPT
weren't part of that deal, and the subsidiary's guilty plea won't
affect that agreement, the Airbus spokesman said.
Lawyers for GPT's former managing director, Jeffrey Cook, and
another individual charged, Terence Dorothy, declined to comment.
Mr. Cook previously served as an official in the Defense
Ministry.
A lawyer for a third person charged by the SFO, John Mason, who
the agency has described as the financial officer and part owner of
two GPT subcontractors, didn't respond to a request for
comment.
The three individuals are scheduled to begin trial in May 2022,
the SFO said on Wednesday.
GPT ceased operations in April 2020. Airbus bought GPT in 2007
from Ericsson AB.
The subsidiary, whose sole customer was the Defense Ministry,
designed and operated communication systems for the Saudi Arabian
National Guard under a government-to-government agreement between
the ministry and the Saudi government.
Write to Dylan Tokar at dylan.tokar@wsj.com
(END) Dow Jones Newswires
April 28, 2021 16:22 ET (20:22 GMT)
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