THE PRIME Minister of Malaysia Mahathir Mohamad said yesterday that payments to offset large orders could not be considered bribes.

Mahathir was responding to questions from reporters on a sponsorship deal the owners of Air Asia struck with plane maker Airbus.

The Serious Fraud Office (SFO) said last week as it concluded a €3.6bn (£3bn) settlement with Airbus, that the European plane giant had bribed Air Asia executives to win orders.

Prosecutors alleged Airbus paid a bribe of $50m (£39m) via sponsorship of the now-defunct Caterham F1 team which was owned by Air Asia chief executive and Queens Park Rangers co-owner Tony Fernandes.

Mahathir said he would not comment on the accusations, but said in high-value deals it was common to ask for an offset.

"When governments buy equipment, we always ask for an offset If we can get something because we buy something at a high price, why can't we accept?" he said.

Fernandes denies any wrongdoing.

(c) 2020 City A.M., source Newspaper