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Eads Accused By French DST Of Having Slush Fund  
User currently offlineN1786b From United States of America, joined Sep 2005, 560 posts, RR: 17
Posted (7 years 9 months 4 days 7 hours ago) and read 2578 times:

The French DST has accused EADS of having a slush fun to help win large export contracts.

Capital.fr is running a story saying the Gallois has been summoned to the Elysee to explain the report by the DST saying that EADS has a slush fund for kickbacks on large contracts. It says the report contains information about kickbacks for "several contracts" and cites the Emirates A380 contract in Nov 2001 where "on this occasion a curious transfer of over $50 million went through an account in Tunis. (My translation of the Original French below)

"A cette occasion, plus de 50 millions de dollars auraient mystérieusement transité par un compte bancaire domicilié à Tunis."

Even more interesting, is the fact that Jean-Paul Gut will have to manage this scandal before he leaves to take a job at the Qatar investment fund wanting to buy 10% of EADS.

The original story can be found here (in French)

http://www.capital.fr/Actualite/Defa...asp?source=FI&numero=62687&Cat=SOF

Will this take off or simply be squashed like the Saudi/BAE Systems bribery scandal?

- n1786b

9 replies: All unread, jump to last
 
User currently offlineLumberton From United States of America, joined Jul 2005, 4708 posts, RR: 20
Reply 1, posted (7 years 9 months 4 days 5 hours ago) and read 2486 times:

Here's a report from Reuters:
http://yahoo.reuters.com/news/articl...-54_L2126872&type=comktNews&rpc=44

Quote:
PARIS, March 21 (Reuters) - France denied a magazine report on Wednesday that the head of Airbus parent EADS (EAD.PA: Quote, Profile , Research) had been ordered to explain an intelligence report uncovering a suspected system for paying kickbacks on aircraft sales.
Capital magazine reported on its Web site that President Jacques Chirac's diplomatic adviser had called in EADS co-chief executive Louis Gallois to discuss what it described as a report by domestic intelligence service DST alleging kickbacks over high-profile deals including the sale of A380 superjumbos.
"The president's office categorically denies that it has summoned Louis Gallois to talk about a note from the DST," Chirac's official spokesman Jerome Bonnafont said.
He declined to comment on whether such a note existed or on the rest of the report, which said the DST suspected a "slush fund" had been used to issue payments on export deals for years, including the sale of 43 superjumbos to Emirates Airlines [EMAIR.UL].



"When all is said and done, more will be said than done".
User currently offlineScotron11 From United Kingdom, joined Feb 2004, 1178 posts, RR: 3
Reply 2, posted (7 years 9 months 4 days 5 hours ago) and read 2464 times:

Quoting N1786b (Thread starter):

Will this take off or simply be squashed like the Saudi/BAE Systems bribery scandal?

We shall see. All the government has to say is "national security" and that shuts everyone up.

However, allegations of the use of kickbacks by Airbus is nothing new. A few years back with KU and also the SR/SN fiasco.


User currently offlineTYCOON From United States of America, joined Feb 2007, 427 posts, RR: 3
Reply 3, posted (7 years 9 months 4 days 5 hours ago) and read 2439 times:

Everybody provides some form of kickbacks whether they are European, US, Canadian or Brazilian manufacturers. To think otherwise is shockingly naive! Rule of the Game: JUST DON'T GET CAUGHT!

User currently offlineLumberton From United States of America, joined Jul 2005, 4708 posts, RR: 20
Reply 4, posted (7 years 9 months 4 days 3 hours ago) and read 2337 times:

Quoting TYCOON (Reply 3):
Everybody provides some form of kickbacks whether they are European, US, Canadian or Brazilian manufacturers.

Can you elaborate on the Canadian, U.S., and Brazilian kickback allegations? Sources? Links?



"When all is said and done, more will be said than done".
User currently offlineGRIVely From United States of America, joined Dec 2006, 139 posts, RR: 0
Reply 5, posted (7 years 9 months 4 days 3 hours ago) and read 2247 times:

Quoting TYCOON (Reply 3):
Everybody provides some form of kickbacks whether they are European, US, Canadian or Brazilian manufacturers. To think otherwise is shockingly naive! Rule of the Game: JUST DON'T GET CAUGHT!

There is a US law called the Foreign Corrupt Practices Act (FCPA) that specifies extremely serious sanctions for violations. As an officer of my company and member of the board I am PERSONALLY, as well as criminally, liable for any violations of the law caused by me, other officers, or our employees. I assure you that I pay extremely close attention to all matters regarding potentially improper payments. The US Justice Department regularly indicts and convicts US business persons for engaging in bribery, kickbacks or other violations of the act.

Tycoon, if you truly have any hard evidence of US companies engaging in bribery please contact a federal prosecutor as there are monetary rewards available for information leading to a conviction. Since the size of the reward is dependent upon the value of the sale, not the bribe/kickback itself, you could make out quite handsomely if your allegations are based in fact and provable. Unfortunately, saying "everybody does it" is probably not a sufficient level of proof.

the GRIV


User currently offlineTYCOON From United States of America, joined Feb 2007, 427 posts, RR: 3
Reply 6, posted (7 years 9 months 3 days 21 hours ago) and read 2109 times:

Trust me, EVERYBODY does. That laws exist in various countries preventing such practices is nothing new. The U.S. is certainly not any holier than other countries in this regard. France, the UK, Canada, Germany all have similar very stringent and draconian laws preventing bribery, kickbacks, etc... from taking place. It's well documented: look it up yourself in your local libraries. I spent a good amount of time in grad school on aviation policy (both airline and civil aircraft manufacturing) at MIT. Wrote my thesis on aviation policy and touched on this subject in my research.
It still remains highly illegal, don't get me wrong. But it does happen. End of story.


User currently offlineBoomBoom From , joined Dec 1969, posts, RR:
Reply 7, posted (7 years 9 months 3 days 21 hours ago) and read 2088 times:

Quoting TYCOON (Reply 6):
I spent a good amount of time in grad school on aviation policy (both airline and civil aircraft manufacturing) at MIT. Wrote my thesis on aviation policy and touched on this subject in my research.

Well then, you should be able to provide some sources and links.


User currently offlineAtmx2000 From United States of America, joined Oct 2004, 4576 posts, RR: 37
Reply 8, posted (7 years 9 months 3 days 19 hours ago) and read 2025 times:

Quoting TYCOON (Reply 6):
France, the UK, Canada, Germany all have similar very stringent and draconian laws preventing bribery, kickbacks, etc... from taking place

No, most have only had laws against domestic bribery and kickbacks. They might have passed laws recently against their own citizens committing bribery in foreign countries though in response to international initiatives to make such things punishable.



ConcordeBoy is a twin supremacist!! He supports quadicide!!
User currently offlineMD95 From Italy, joined Apr 2005, 104 posts, RR: 0
Reply 9, posted (7 years 9 months 3 days 19 hours ago) and read 1977 times:

Instead of bribary call them "commission" or "counsultancy fees" and everything became legal.


dario
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