Thales Denies Allegations of Bribery and Corruption
French defence and technology firm Thales has denied allegations of bribery and corruption brought to its attention by Britain’s Serious Fraud Office (SFO) and France’s PNF financial prosecutor.
Investigation Details
The joint investigation concerns a contract in Asia and focuses on four entities in France and the UK. Thales has stated that it is cooperating with the authorities and always complies with national and international laws.
Company Response
Thales has denied the allegations brought to its knowledge, but did not provide further details of the allegations or say when it first learned of them or how. The company has a "zero tolerance" policy towards corruption, as stated in its recent corporate report.
Stock Market Reaction
Shares in partially state-owned Thales fell as much as 7% but recovered most of the losses to end the day down 2.9%.
Investigation Scope
The investigation is centered on possible charges of bribery of a foreign public official, influence trafficking, handling stolen goods, and money laundering. Two people familiar with the case said it at least partially involved a business deal in Indonesia.
Indonesia’s Defence Ministry Response
Indonesia’s defence ministry has stated that all Thales contracts with the ministry and the country’s defence industry follow rules of transparency, accountability, and good governance, and the ministry has not seen any indication of those contracts breaking any law.
Thales’ Products and Services
Thales’ military and civil products range from sub-hunting sonars to biometric identity systems for banks, and from satellites to seat-back entertainment systems for airlines. The company also provides cybersecurity services, radar for French Rafale warplanes, and is involved in two satellite ventures with Italian aerospace group Leonardo.
Previous Investigations
The latest investigation appears to come on top of two earlier probes by France’s PNF as well as an ongoing investigation inherited from the acquisition of chipmaker and digital security firm Gemalto in 2019. In June, searches were carried out at sites in France, the Netherlands, and Spain as part of two preliminary investigations by France’s PNF.
Conclusion
Thales’ denial of the allegations and cooperation with the authorities suggest that the company is committed to transparency and compliance with national and international laws. However, the investigation is ongoing, and the outcome remains uncertain.
FAQs
Q: What is the nature of the investigation?
A: The investigation concerns a contract in Asia and focuses on possible charges of bribery of a foreign public official, influence trafficking, handling stolen goods, and money laundering.
Q: Has Thales conducted its own internal probe?
A: The company has not commented on whether it is conducting its own internal probe.
Q: What is the impact on Thales’ stock price?
A: Shares in Thales fell as much as 7% but recovered most of the losses to end the day down 2.9%.
Q: Is Thales cooperating with the authorities?
A: Yes, Thales is cooperating with the authorities and always complies with national and international laws.
Q: What is the significance of the investigation?
A: The investigation is the most high-profile corporate investigation between Britain and France since a multinational probe into European planemaker Airbus.