FRANKFURT: German prosecutors have ordered Airbus to pay 81.25 million euros ($99 million) to settle one of two investigations into alleged corruption surrounding the sale of Eurofighter combat jets to Austria in 2003, the two sides said on Friday.
The settlement includes an administrative fine of 250,000 euros and “disgorgement” — which legal experts broadly define as the recovery of ill-gotten gains — of 81 million euros.
Munich prosecutors have been investigating whether Airbus issued bribes to win the $2 billion contract: charges it denies.
In a statement, prosecutors said they had not found evidence of bribery but that Airbus had been unable to account for over 100 million euros in payments to two shell companies.
EADS, as the main Airbus parent group was known at the time, sent funds totalling a triple-digit-million euro amount to Vector Aerospace LLP and City Chambers Limited, they added.
Most of these funds, by evading internal control mechanisms, had been used for what the prosecutors said were “unclear purposes,” adding it could not be finally determined what the funds had been spent on.
Airbus said in a statement the penalty, which it had agreed to pay, related to the “negligent breach of supervisory duties” by unidentified members of Airbus Defense and Space’s former management.
The former managers failed to ensure proper controls that would have prevented payments to “business partners” without the company getting proven services in exchange.
Airbus regularly uses the term “business partners” to refer to foreign sales agents or intermediaries.
It is being investigated separately in France and Britain over the handling of agents in the sale of commercial jets.
While Friday’s settlement ends the Munich investigation, Airbus and individuals including Chief Executive Tom Enders, who headed the company’s defense business from 2000 to 2005, face an ongoing investigation in Vienna into the Eurofighter deal.
Airbus and Enders have denied wrongdoing and accused the Austrian government of playing politics with the investigation.
Airbus ordered to pay $99m fine in Eurofighter case
Airbus ordered to pay $99m fine in Eurofighter case
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
