BDO presents final report to AirAsia X board committee

KUALA LUMPUR, March 20 — BDO Governance Advisory Sdn Bhd (BDO), an independent expert appointed by AirAsia X Bhd (AAX), through the formation of a board committee, has presented its report on the findings of the independent internal inquiry and circulated the final report to the committee.

In a filing with Bursa Malaysia today, AAX said the committee has accepted the final report issued by BDO upon review of the report.

It said the findings of BDO are among others, the company has a robust aircraft procurement process, of which the process was complied with and the company’s aircraft acquisition was justifiable and at prices favourable to the company.

“The company’s sponsorship of a 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 at the relevant time. The sponsorship showed demonstrable benefits to the AirAsia Group and was not linked to any purchase decisions by the company,” it said.

The report also disclosed that (Air Asia Group co-founders) Tan Sri Anthony Francis Fernandes and Datuk Kamarudin Meranun had properly disclosed their interests to the board and abstained from discussions and/or decisions relating to the said sponsorships.

“The report has now been circulated to and accepted by the board (excluding Fernandes and Kamarudin),” it said.

BDO Governance Advisory was appointed to assist the non-executive independent board committee in undertaking the review concerning both AirAsia and AAX.

On Feb 3, Air Asia Group, in a filing with Bursa Malaysia, said it had set up a non-executive independent board committee, comprising non-executive members of the board, to review the Airbus bribery allegations against the airline and take any necessary action based on the review.

AirAsia and AAX were mentioned in a UK court document, which alleged Airbus SE of bribing two top executives of the airlines with some US$50 million (RM207 million) in exchange for purchasing Airbus aircraft.

Source: BERNAMA News Agency