n1786b
Posts: 384
Joined: Tue Sep 27, 2005 6:10 am

Eads Accused By French DST Of Having Slush Fund

Thu Mar 22, 2007 4:59 pm

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
 
Lumberton
Posts: 4176
Joined: Fri Jul 29, 2005 7:34 am

RE: Eads Accused By French DST Of Having Slush Fund

Thu Mar 22, 2007 6:45 pm

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".
 
scotron11
Posts: 1181
Joined: Tue Feb 10, 2004 4:54 pm

RE: Eads Accused By French DST Of Having Slush Fund

Thu Mar 22, 2007 6:56 pm

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.
 
TYCOON
Posts: 436
Joined: Sun Feb 18, 2007 8:20 pm

RE: Eads Accused By French DST Of Having Slush Fund

Thu Mar 22, 2007 7:04 pm

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!
 
Lumberton
Posts: 4176
Joined: Fri Jul 29, 2005 7:34 am

RE: Eads Accused By French DST Of Having Slush Fund

Thu Mar 22, 2007 8:24 pm

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".
 
GRIVely
Posts: 113
Joined: Wed Dec 13, 2006 5:46 am

RE: Eads Accused By French DST Of Having Slush Fund

Thu Mar 22, 2007 9:08 pm

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
 
TYCOON
Posts: 436
Joined: Sun Feb 18, 2007 8:20 pm

RE: Eads Accused By French DST Of Having Slush Fund

Fri Mar 23, 2007 2:23 am

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.
 
BoomBoom
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Joined: Fri Nov 04, 2005 2:26 am

RE: Eads Accused By French DST Of Having Slush Fun

Fri Mar 23, 2007 2:37 am

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.
Our eyes are open, our eyes are open--wide, wide, wide...
 
atmx2000
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Joined: Wed Oct 13, 2004 4:24 pm

RE: Eads Accused By French DST Of Having Slush Fund

Fri Mar 23, 2007 4:46 am

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!!
 
MD95
Posts: 86
Joined: Wed Apr 06, 2005 3:27 am

RE: Eads Accused By French DST Of Having Slush Fund

Fri Mar 23, 2007 5:14 am

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