AIRASIA co-founders Tony Fernandes and Kamarudin Meranun today denied any wrongdoing after the budget airline was implicated in alleged corrupt practices in an investigation by the UK Serious Fraud Office (SFO) against Airbus SE.

Fernandes and Kamarudin said they will give authorities their full cooperation even though they have not been approached about the allegations or the €991 million (RM4.5 billion) deferred prosecution agreement that the SFO reportedly arrived at with Airbus.

“This agreement and the contents were arrived at without any reference to us; neither were any explanations sought from us. This is in clear violation of fundamental legal principles of fairness.

“We categorically deny any and all allegations of wrongdoing or misconduct on our part as directors of AirAsia,” they said in a joint statement today, adding that they welcome any investigations by the authorities.

Kamarudin, who is AirAsia Group Bhd (AAGB) executive chairman, and chief executive officer Fernandes said they would not have harmed the companies they have spent their entire lives building to its present status as a global budget airline.

“So as to facilitate a full and independent investigation by AirAsia, we are relinquishing our executive roles with immediate effect for a period of two months, or such other period that the companies may deem fit,” they said.

The duo said they will continue to assist AirAsia in an advisory capacity as and when required.

Meanwhile, in a Bursa Malaysia filing earlier today, the airline group said the two have been redesignated as non-independent non-executive board members of AAGB.

In view of the current difficult economic circumstances facing the airline industry, a Non-Executive Independent Board Committee formed by AAGB’s board of directors has decided to retain them as advisers to the company during the two-month period.

The committee comprises the non-executive members of the board.

Tharumalingam Kanagalingam has been appointed the acting CEO of AAGB in the interim on the recommendation of the committee.

The Malaysian Anti-Corruption Commission (MACC) on Saturday said it has gotten in touch with British authorities and is investigating claims in UK court documents that executives in the two airlines were paid US$50 million (RM204 million) by Airbus in exchange for sales contracts.

Meanwhile, the Securities Commission said yesterday it will examine the allegations and review all evidence to determine whether securities laws were breached as both AirAsia and AirAsia X are listed entities.

The Malaysian Aviation Commission (Mavcom) today said it will also probe into the Airasia-Airbus graft allegations to check for violations to the Malaysian Aviation Commission Act.

The aviation regulator said as holders of air service licences issued by Mavcom, AirAsia and AirAsia X are subject to the Mavcom Act and its guidelines.

This came as a response to a judgment by the Crown Court in London on graft allegations involving Airbus SE and AirAsia Bhd and AirAsia X Bhd executives.

The budget airline has denied the allegations, including that aircraft order agreements were linked to the sponsorship of a sports team related to AirAsia executives.

The agreement in the UK is part of a global settlement action for bribery, in which the aircraft manufacturer has to pay a total of €3.6 billion over the next three years to authorities in the US and France as well to avoid prosecution. – February 3, 2020.