AAR Corp. discloses former exec implicated in Nepal, South Africa FCPA violations

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Aviation maintenance services provider AAR Corp. disclosed that several former employees may have bribed officials in Nepal and South Africa to win contracts, and chose to self-report violations of the Foreign Corrupt Practices Act (FCPA) to authorities in the U.S. and U.K.

Illinois-based AAR said in a disclosure to the Securities and Exchange Commission (SEC) published Monday that it self-reported FCPA violations to the Department of Justice (DOJ), the SEC, and the U.K. Serious Fraud Office in 2019. The company noted, “Selling, general, and administrative expenses increased … over the prior year quarter primarily due to increased costs of $3.9 million related to the previously disclosed FCPA investigations,” adding that it is fully cooperating with the probes.

Airplane and airplane parts manufacturers have a long and sordid history of paying bribes to win contracts, most notably the wide-ranging bribery scandal at Airbus that led to a $4 billion settlement with U.S. and European regulators in 2020.

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