Airbus Bribery Allegations Rock Canada and Switzerland

Strategic Insights -

Canadian authorities and their Swiss counterparts are investigating claims of bribery surrounding the sale of Airbus aircraft to Canadian companies. The allegations point to a complex web of deals, shell companies, and secret commissions paid to influential individuals, including former Canadian politicians. An Air Canada contract with Airbus Industrie is at the center of the probe, which has been ongoing since at least 1988.

Key Takeaways:

  • The investigation centers on the 1988 sale of 34 Airbus A-320 planes to Air Canada for $1.8 billion.
  • A front company in Liechtenstein received a commission of approximately $20 million, which may have been funneled into numbered Swiss bank accounts for Canadian politicians.
  • The Swiss justice department is investigating allegations that bribe money was paid into Swiss bank accounts during the sale of Airbus aircraft to Canadian companies.
  • A German-Canadian businessman, Karlheinz Schreiber, had connections to the Progressive Conservative government of former Prime Minister Brian Mulroney and may have played a role in opening Swiss bank accounts for unidentified politicians.
  • Former Newfoundland premier Frank Moores denied allegations that he received $5 million in consulting fees from Air Canada in exchange for influencing the Airbus deal.
  • Air Canada and Airbus maintained their silence on the matter, with an Air Canada spokeswoman refusing to comment.

Statistics:

  • $1.8 billion: The value of the 1988 sale of 34 Airbus A-320 planes to Air Canada.
  • $20 million: The approximate commission received by a front company in Liechtenstein during the sale.
  • 5 million: The amount allegedly paid in consulting fees to a lobbying company owned by Frank Moores.
  • 34: The number of Airbus A-320 planes sold to Air Canada in 1988.

Sources:

  • Agence France-Presse (French news service)
  • Swiss TV network DSR, cited by Agence France-Presse
  • RCMP spokesman (citing Swiss authorities)
  • CBC program "The 5th Estate" (aired in March 1995)
  • Paul Palango's 1994 book (mentioned in the text)
  • Swiss federal justice and police department spokesman
  • Air Canada spokeswoman
  • Airbus Industrie (mentioned in the text)