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Nothing wrong in seeking an offset, says Dr M on AirAsia case
PUTRAJAYA: Dr Mahathir Mohamad said that asking for an offset in a business transaction is a normal practice, provided the money is not pocketed.
The prime minister said normally when the government procures equipment, they would ask for an offset.
“And whether you regard an offset as a bribery, that’s up to you,” he told reporters after an event here.
Mahathir was asked to comment on corruption allegations involving budget airline AirAsia and Airbus.
Reports citing legal documents alleged that Airbus paid US$50 million (RM204 million), and offered US$55 million more, to sponsor a sports team linked to two unnamed “key decision-makers” at AirAsia and AirAsia X.
The documents are part of a multi-billion dollar settlement reached with anti-graft authorities in Britain, France and the US, after the European plane maker admitted to bribery in its international business.
AirAsia Group Berhad has rejected the claims.
But Mahathir wondered why getting something in return when purchasing an item at a high price could not be accepted
“If the money goes into our pocket, that is corruption. But if the money is channelled to other things, it is an offset.
“That is my personal view.”
The Malaysian Anti-Corruption Commission and the Securities Commission are both probing the matter.
https://www.freemalaysiatoday.com/category/nation/2020/02/06/nothing-wrong-is-seeking-an-offset-says-dr-m/
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Discussions
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Is not an offset as the payment was to his sports team, which has nothing to do with Air Asia Group. And it was not used as a rebate or discount for Air Asia future commitments.
2020-02-06 17:05
Yeah, Jho Low also same mah, goes into his company, not his own pocket mah. Lol!
2020-02-06 21:19
In June 2011 AirAsia ordered 200 Airbus A320neos at the Paris Air Show.[67][68] The planes were originally due to become available in 2015, and the deal was one of the largest ever for commercial aircraft in a single order.[67] The deal was worth US$18 billion at list prices, although AirAsia will have obtained a substantial discount from those prices.[68] The deal makes AirAsia Airbus' single biggest customer.[69] On 13 December 2012, AirAsia placed an order for an additional 100 Airbus A320 jets, splitting it between 64 A320neo and 36 A320ceo.[70] At the Farnborough International Air Show in 2016, Air Asia ordered 100 A321neos at an estimated cost of US$12.6 Billion dollars at list prices.[71] Air Asia plans to fly these larger aircraft to airports that have infrastructure constraints.[72] AirAsia received its first A320neo In September 2016.
................
What is 50M vs US$ 18 Billion?
That is 0.2% margin impact.....
what fcuking non-sense bribery and shareholder value you all talking about....
2020-02-06 22:09
yes Fortune...double whammy event...you can never find such cheap sale ever for AA!
2020-02-06 22:15
Is the act of Airasia buying airbus aircraft subject to the condition of Tony and Kamaruddin own company must get sponsorship from Airbus leh ?
If no, to the fuck of macc & other corruption investigations, where is the fucking corruption leh ??
2020-02-06 22:20
"Posted by warchest > Feb 6, 2020 5:05 PM | Report Abuse
Is not an offset as the payment was to his sports team, which has nothing to do with Air Asia Group. And it was not used as a rebate or discount for Air Asia future commitments."
US50M is offset for AA
Another payment to his sports team, nothing related to AA.
Don't try to mix up and conclude.
Only asses assume.
2020-02-06 22:20
TF owns 1/3 of AA....he is more concern on "shareholder's interest" than any other fcuking shareholders here....
2020-02-06 22:27
Different business entity...how to offset.
Offset his head ah?
Anywhr...main motive is to make tony heart soft and slowly he has to agree with tun to merge with MAS.
2020-02-06 22:33
what is 50M shared between 2 person indirectly versus the Billions ringgit interest they have on AA.........
That 50M did not even went to their pocket...may be RM 1k went in
you think all other companies in Bursa are held by "Puritans"?? They dont buy anything for their customers??
fcuk the hypocrisy....
market really need to wake up leh!
.................................
2020-02-06 22:33
Look at the cost they incur for buying the planes from Airbus below:
https://en.wikipedia.org/wiki/AirAsia
On June 2011 AirAsia ordered 200 Airbus A320neos at the Paris Air Show.[67][68] The planes were originally due to become available in 2015, and the deal was one of the largest ever for commercial aircraft in a single order.[67] The deal was worth US$18 billion at list prices, although AirAsia will have obtained a substantial discount from those prices. The deal makes AirAsia Airbus' single biggest customer.
On 13 December 2012, AirAsia placed an order for an additional 100 Airbus A320 jets, splitting it between 64 A320neo and 36 A320ceo.[70] At the Farnborough International Air Show in 2016, Air Asia ordered 100 A321neos at an estimated cost of US$12.6 Billion dollars at list prices.
Air Asia plans to fly these larger aircraft to airports that have infrastructure constraints.[72] AirAsia received its first A320neo In September 2016.
With this, the total number of orders that AirAsia had placed for the Airbus A320 family had gone up to 575, reaffirming the carrier's position as the largest airline customer for the Airbus single aisle product line.[73]
(1) WHAT AIRBUS GAINS?
.......................
say Airbus hikes their margin by 0.5% by bribing TF and KM with US$ 50M:
Airbus cost of 300 Units: US$ 18B + US$ 12.6B = US$ 30.6B
Airbus gain:
= 0.5% x US$ 30.6 B
= RM 650 Million
Net Airbus gain:
= RM 650 Million - RM 200 M (bribery)
= RM 450 Milliom
(2) WHAT TF & KM GAINED?
.........................
What TF & KM gained from bribery of US$ 50M:
= RM 200 M
loss in AA with combined stake of 32%:
= 32% x 650 Million (cost hike)
= RM 210,000
Net gain by TF & KM:
= 200 - 210
= - 10 Million
...................
From the above, i cannot see any logic even if 100% of the bribery amount of 200 M went into their pocket...
will Airbus just for the sake RM 450M gain bribe RM 200M?
If Airbus benefited more by hiking more on their planes price....TF & KM will definitely suffer greater loss...
I hope the above rational, logical argument sinks to everyone's head.
==========================================================
2020-02-06 23:24
Airasia whether good time or bad time always buy airbus & never other aircrafts all this while mah.....!!
Even airbus sponsorship of Tony & Kamaruddin company has no bearing on airasia buying decision mah...!!
Thus MACC no case loh...!!
Posted by newbie911 > Feb 6, 2020 10:33 PM | Report Abuse
Different business entity...how to offset.
Offset his head ah?
Anywhr...main motive is to make tony heart soft and slowly he has to agree with tun to merge with MAS.
2020-02-06 23:35
RM200m is a ‘gift’ given by Airbus. It’s up to you to spend it on your luxury hobbies, or declared & spent the money on the companies, especially when the company did not do well at that time.
2020-02-07 21:27
you mean its a donation?
coz majority of AirAsia customers 99% are in the UK and
AirAsia operate out of Heathrow flying from London to New York
majority of AirAsia staff are also UK citizens
Board of Directors of AirAsia are all British as well.
so must advertise in UK
its all perfectly legal.
2020-02-07 21:33
The offsets given is actually contribution pay by airbus for sponsorship, advertisement & promotion given to support the F1 and QPR football company loh...!!!
Thats a bribery or a business deal leh ??
2020-02-08 17:49
Definitely contributions mah....bcos these are commercial orgainizations & not charitable organization loh....!!
Posted by EngineeringProfit > Feb 8, 2020 5:51 PM | Report Abuse
Contribution or donation?
2020-02-08 17:52
Next time, many listed entities in Bursa would exploit this exclusive 'offset' method to siphon money out of the companies. Malaysia Boleh!
2020-02-08 19:12
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Time to whack AirAsia......
Dr.M can turn potential PM to convict and back again to a PM
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His words are final:
PM on AirAsia-Airbus scandal: It’s normal to have ‘offsets’ in business
2020-02-06 16:12