Annual Report 2019

45. Subsequent events (i) Establishment of a Joint Venture in Thailand On 4 December 2019, Teleport Everywhere Pte. Ltd. and Triple I Logistics Public Company Limited signed a shareholders’ agreement, to establish Teleport (Thailand) Co., Ltd. to provide logistics services to Thai AirAsia Co., Ltd. (“TAA”) and Thai AirAsia X Co., Ltd. The issued and paid-up share capital of Teleport Thailand is THB10 million (equivalent to RM1.37 million), divided into 1 million ordinary shares of THB10 each. Further, on 30 December 2019, Teleport Everywhere Pte. Ltd. signed a Master General Cargo Sales Agent Agreement with TAA regarding the cargo capacity of TAA. Both agreements are effective on 1 January 2020. (ii) Airbus bribery allegations AirAsia Berhad (“AAB”, wholly-owned subsidiary of AAGB) was mentioned in the Approved Judgment and the Statement of Facts in relation to the case of Regina v Airbus SE (“Airbus”), dated 31 January 2020 whereby, Airbus signed a Deferred Prosecution Agreement (“DPA”) with U.K. Serious Fraud Office (“SFO”) with a settlement of US$4 billion. Indicated therein that Airbus paid US$50 million and offered US$55 million more to sponsor a sports team linked to executives of AAB. On 3 February 2020, the Securities Commission Malaysia (“SC”) has announced that it will examine the allegations against AAB as mentioned in the SFO report. On the same date, the Board has formed a Non-Executive Independent Board Committee (“Committee”) to review the allegations and to take any necessary action. The Committee has engaged BDO Governance Advisory Sdn. Bhd. (“BDO”) to assist them on conducting independent internal inquiry. Further, the two executives involved in the allegations (i.e. AAGB’s Executive Chairman, Datuk Kamarudin bin Meranun, and Chief Executive Officer, Tan Sri Anthony Francis Fernandes), relinquished their executive positions within the Group. On 19 March 2020, the independent inquiry report was presented to and accepted the Board and arising from this, the Board has resolved to reinstate the executive positions of the two executives involved. On 20 March 2020, the same report from BDO was submitted to SC. As of 6 July 2020, there was no update subsequent to the submission of the report. 46. Other matters Litigations involving AAB and Malaysia Airports (Sepang) Sdn. Bhd. (“MASSB”) In prior year, AirAsia Berhad (“AAB”), a wholly owned subsidiary of the Company, received a Writ of Summons and Statement of Claim (“Claim”) dated 10 December 2018 and on 31 January 2019, Malaysia Airports (Sepang) Sdn. Bhd. (“MASSB”) filed claims at the High Court of Malaya at Kuala Lumpur, claiming the additional RM23 per Passenger Services Charges (“PSC”) which AAB was required to collect effective 1 July 2018. On 18 September 2019, AAB paid a sum of RM14,156,818.47 (being the amounts specified in the Garnishee Show Cause Orders dated 23 August 2019) to MASSB to defray the garnishee execution proceedings. The payment was made by AAB without prejudice to AAB’s rights, including AAB’s rights in the appeals made in relation to the judgement order dated 18 July 2019 and any connected interlocutory applications. On 2 October 2019, AAB filed a Writ of Summons at the Kuala Lumpur High Court against MASSB for a the sum of RM479,781,285.00, being loss and damage caused by negligence on the part of MASSB, its servants and/or agents in the management, operation, maintenance and/or provision of airport services and facilities at KLIA2. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2019 (CONT’D.) 334 MORE THAN JUST AN AIRLINE >