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Airbus ran ‘massive’ bribery scheme to win orders

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Re: Airbus ran ‘massive’ bribery scheme to win orders

#71
post #3

In Canada SNC Lavalin same things. This is not an easy thing though: the countries in which bribes are paid are run by corrupt people who expect kickbacks as part of doing business, and there's no other way about it. If the West wants to play morally superior on this - then 100% of Airbus, Boeing, SNC, Halliburton and massive industrials will full-on go out of business. This issue is not part of the current round of…

Corruption has already massively improved since the heydays of the 60s and 70s, so I doubt your cynicism. But of all the industries, big planes should be among the easiest to clean up: there’s only two participants in this prisoners‘ dilemma, and they are both, theoretically, under the purview of rigorous enforcement in countries governed by law.

"there’s only two participants in this prisoners‘ dilemma, and they are both, theoretically, under the purview of rigorous enforcement in countries governed by law."

What? No.

There are 1000's of participants, and few of them are under the purview of the law.

1. Someone wants access to a Malaysian Air exec at some hotel event. Bribe someone for info.

2. Someone is overseeing the aircraft regulatory body, their findings will sway one way or another. Bribe them.

3. Someone is drafting legislation to support the state-sponsored purchase of aircraft. Bribe them.

4. The brother of the 'deciding individual' at Malaysian Air hints he can help access. Bribe them.

5. The people responsible for lower-level contractual affairs are putting up a fuss over some little details? Bribe them.

6. The 'respected international consultancy' is putting together the business plan for the national airline strategy. Bribe them.

7. The executives making the purchase want a kickback. Bribe them.

These bribes come in all forms, some of them more or less legal, or more or less ethical - depending on the law.

Does giving the son of the Malay MP drafting relevant legislation a job at Airbus constitute a bribe? Or just congeniality?

Does flying in a team of officials for an all-expenses-paid, swanky getaway at a high-end swiss resort for 'a meeting' constitute a bribe?

In the West, a lot of this happens in fuzzier ways, borderline ethical. In other countries, it's just how business is done.

In other places, like Nigeria, it's pretty straight forward. Once you get to the Nigerian Minister of Natural Resources, he will have spelled out for you by people in his periphery beforehand nature and expected size of the bribe, how it gets transmuted so that nothing 'impolite' happens directly in his presence.

If you're an American IT company that has support offices in the Middle East and Africa that subcontracts the work to local companies, but then wants to end such contracts in favor of direct hires ... and said subcontractors are connected - you will 'pay a bribe' out of the sunshine fund.

If you're IKEA and want to open a store in Moscow, you will pay x% of your revenue to a local 'businessman/thug'. If not - no store! So you wait a decade and realize you have no choice, and so you just pay the appropriate tributes.

Again - the issue is how the plebes in the West are going to react when they start to learn how everything is working.

The only way to 'end' this is to have a lot of various powers on board, and it's going to be different in every country.

It might work out differently in every country, and maybe at different levels of scale, or happen in a different way, i.e. instead of 'kickbacks', execs get lucrative contracts somewhere else or some other kind of benefit.

This will take a few centuries to sort out.

Edit: to be clear I'm not advocating at all for any of these shenanigans.

Re: Airbus ran ‘massive’ bribery scheme to win orders

#72
post #70

Earlier quoted context omitted.

If it's structured like that, sure, but it'll not be done that way. One approach is for a politician/candidate to hold a fundraising lunch/dinner/whatever, and charge for seats. Lobbyists and other folks who want to get access to the senator will buy those tickets and get their couple of minutes to talk about whatever issue is important to them. Any direction on bill will almost certainly be of a more indirect nature…

So you're saying it's 100%, without a doubt bribery, but we're just going to use some tricky language so it doesn't sound like that. America is corrupt to the very core, don't try to explain it away with newspeak or some kind of roundabout language. It's extremely common to buy the favour of politicians.

America is corrupt to the very core

Not long ago, I stumbled upon an old book in my uni library - Congress meeting notes from 1860s. It was fascinating to read about some dude who bribed congressmen to get his book published/distributed (the $50 book was about some tax rules, thousands of copies sold). One of his trial responses has stuck in my mind: "You gotta know someone to get things done". Nothing has changed. Oh, in that particular case, back then, a couple of congressmen lost their jobs, but no one went to jail, even though it was proven the bribery took place.

Re: Airbus ran ‘massive’ bribery scheme to win orders

#73

Earlier quoted context omitted.

Because it’s not. You know that lobbyists can’t pay politicians, right? The meme that “lobbying == bribery” needs to die.

Where there's memes there's facts. (smoke -> fire) The Clintons were "never bribed", for instance, they were just getting paid millions of dollars in "speaking fees". You don't need to swap briefcases at a park bench to do bribery. There's plenty of unspoken quid pro quo understandings that the participants are well aware of, and this is far more effective as there'll never be any smoking guns to bring them down.

With the Clintons, the big conflict of interest is the Clinton Global Initiative and the Clinton Foundation.

It's a charity (which apparently does pretty good work) but it pays for a lot of things for the Clintons and gives them tremendous status.

Hillary Clinton accepted 100's of millions into her charity from officials with whom she, as a rep. of the US was directly doing business.

She was caught once, directly conferring titles to an individual who contributed to the fund, and the title had to be removed.

Even though I do not generally believe that this is a form of corruption, it's a massive conflict of interest. Just like an exec how owns 90% of a company and takes office has to put said investment in a 'blind trust' - I believe the Clinton Foundation should have effectively been turned into a 'blind trust' as well.

But there are 100% cases of soft pay for access going on here.

Edit: to be more precise, the Clinton charity accepted money from officials of countries and other orgs that the US was dealing with, wherein Hillary was a rep of the US Gov. Not necessarily individuals she was dealing with directly. I'm not throwing flames here, just saying 'conflict of interest'.

Re: Airbus ran ‘massive’ bribery scheme to win orders

#74
post #70

Earlier quoted context omitted.

If it's structured like that, sure, but it'll not be done that way. One approach is for a politician/candidate to hold a fundraising lunch/dinner/whatever, and charge for seats. Lobbyists and other folks who want to get access to the senator will buy those tickets and get their couple of minutes to talk about whatever issue is important to them. Any direction on bill will almost certainly be of a more indirect nature…

So you're saying it's 100%, without a doubt bribery, but we're just going to use some tricky language so it doesn't sound like that. America is corrupt to the very core, don't try to explain it away with newspeak or some kind of roundabout language. It's extremely common to buy the favour of politicians.

> So you're saying it's 100%, without a doubt bribery, but we're just going to use some tricky language so it doesn't sound like that.

Possibly, but it'll depend on your POV and where you draw the line on what's bribery.

Scenario 1: I represent a mega-corporation and I want legislation changed to make it easier for my factories to comply with pollution laws by changing the definition of pollution.

Is it bribery to say to politicians "Our friends see the current standards on pollution are an impediment to the way we do business. Friends help each other out. Would you like to be our friend?"

Scenario 2: I represent a small business, and there's legislation proposed that would make it illegal for me to trade on certain days.

I've always given small donations to my local politicians because they've done things that helped my business, but now there's this threat that could ruin my business.

Is it bribery if I tell them "If you support this legislation, we, and all the other local businesses owners like me will no longer be donating to your campaign, we're going to support your opposition instead".

Re: Airbus ran ‘massive’ bribery scheme to win orders

#75
post #6

> Airbus for years conducted a “massive scheme to offer and pay bribes”, involving very senior executives, according to disclosures in courts in Washington DC, Paris and London, as Europe’s aerospace champion agreed to pay €3.6bn in penalties to regulators in France, the UK and the US. So nobody went to jail, though

> US and UK authorities are considering prosecutions against individuals. Perhaps it'll happen. :)

Keyword is "considering"

Re: Airbus ran ‘massive’ bribery scheme to win orders

#76
post #22

Every company doles out bribes. In many countries bribery is the way to go. Things don’t happen without it. They just find creative ways to make it legal that’s all.

“Every company” is obviously hyperbole. My local deli doesn’t bribe anybody. What do you really mean - every $1bn+ revenue aerospace firm?

My local deli doesn’t bribe anybody

How would you know? Maybe he gives his meat guy generous "tips" to bring him fresher meat than the deli down the street

Re: Airbus ran ‘massive’ bribery scheme to win orders

#78
post #70

Earlier quoted context omitted.

So you're saying it's 100%, without a doubt bribery, but we're just going to use some tricky language so it doesn't sound like that. America is corrupt to the very core, don't try to explain it away with newspeak or some kind of roundabout language. It's extremely common to buy the favour of politicians.

> So you're saying it's 100%, without a doubt bribery, but we're just going to use some tricky language so it doesn't sound like that. Possibly, but it'll depend on your POV and where you draw the line on what's bribery. Scenario 1: I represent a mega-corporation and I want legislation changed to make it easier for my factories to comply with pollution laws by changing the definition of pollution. Is it bribery to sa…

Nobody should be giving any money to politicians, or their campaigns, for any reason what-so-ever.

I realize it's fundamental to American politics now, but that doesn't make it fundamentally wrong.

Re: Airbus ran ‘massive’ bribery scheme to win orders

#79
Article is paywalled, what was the timeline of the bribes happening? Would it be fair to say:

Airbus runs 'massive' bribery scheme -> Airbus wins more orders -> Boeing feels pressure of losing orders -> Boeing execs pressure engineers to cut corners -> Boeing aircraft develop various major safety issues

Re: Airbus ran ‘massive’ bribery scheme to win orders

#80
post #6

> Airbus for years conducted a “massive scheme to offer and pay bribes”, involving very senior executives, according to disclosures in courts in Washington DC, Paris and London, as Europe’s aerospace champion agreed to pay €3.6bn in penalties to regulators in France, the UK and the US. So nobody went to jail, though

Nobody goes to jail for "lobbying" in the US while it is clearly about the same thing as bribery. Just a legal form of it.
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