BDO clears AirAsia’s Fernandes, Meranun of wrongdoing

BDO Governance Advisory Sdn Bhd, the “independent expert” appointed by AirAsia Group Bhd (AAGB), has cleared founders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun of wrongdoing, after both men were implicated in a bribery admission by European planemaker Airbus SE.

AAGB, in a March 20 filing with Bursa Malaysia, said that BDO had submitted its report on March 19 to the board after conducting an independent internal inquiry.

BDO was appointed by the AAGB board on Feb 11 following Airbus’ admission to Britain’s Serious Fraud Office (SFO) on Jan 31 of bribing AAGB and AirAsia X Bhd (AAX) staff as a reward for an order of 135 planes.


SFO said Airbus paid US$50 mil (RM205 mil) in sponsorship to a sports team jointly owned by the two AirAsia executives. These were among the details Airbus divulged to authorities as part of a US$4 bil settlement.

While these executives were not named, Fernandes and Meranun had been implicated due to their past ownership of the now-defunct Caterham Formula One team.

AAGB said it had accepted the final report issued by BDO. In summary, the findings of BDO are as follows:

• AAGB has a robust aircraft procurement process. The process was complied with and AAGB’s aircraft acquisition was justifiable and at prices favourable to AAGB.
• AAGB’s sponsorship of the sports team was approved in compliance with its procedures.
• The sponsorship of the sports team by Airbus was disclosed to and supported by the board of directors of AAGB at the relevant time. The sponsorship showed demonstrable benefits to the AirAsia Group and was not linked to any purchase decisions by AAGB.
• The two executives (Fernandes and Kamarudin) had properly disclosed their interests to the board of directors of AAGB and abstained from discussions and/or decisions relating to the said sponsorships.

AAGB said as the report had been accepted, the board had resolved to reinstate the executive positions of Fernandes and Kamarudin while the appointment of Tharumalingam Kanagalingam (also known as Bo Lingam) had been rescinded.

AAGB’s shares are up 8.65% at 56 sen after the midday break. – March 20, 2020