Mega defense corp Thales faces Anglo-French bribery and corruption probe

Authorities remain tight-lipped on specifics

An investigation into areospace and defense giant Thales is now underway over suspicions of palm-greasing and fraud.

The UK's Serious Fraud Office (SFO) confirmed on Thursday evening that the investigation had begun, but didn't offer any further details about the suspicions beyond the mention of "bribery and corruption."

However, a French judicial source speaking to the Reuters news agency said the investigation centred on an arms contract in Asia. Specifically, the probe is alleged to be looking into claims of potential bribery of a foreign official, influence trafficking, handling of stolen goods, and money laundering.

The SFO said the investigation will be jointly carried out alongside the Parquet National Financier (PNF), which is essentially its equivalent in Paris. 

Given Thales has a significant presence in both countries, and is headquartered in the French capital, the two authorities will be investigating the company in their respective juridcitions.

"Working collaboratively with our international partners is a crucial factor in the fight against international corruption and with this case I hope to reinforce the SFO and PNF's long-standing relationship, built on mutual cooperation and shared success," said Nick Ephgrave, director at the SFO, announcing the probe.

"We will together rigorously pursue every avenue in our investigation into these serious allegations."

Thales has confirmed that it's aware of the investigation and would be cooperating.

The multinational operates 16 different sites across the UK, employing more than 7,000 people. According to its website, the 16 UK sites cover all of Thales's business sectors, which include digital security and space, in addition to aerospace and defense. It claims to add £1.6 billion ($2 billion) to the UK economy.

Thales also receives plenty in the way of public sector contracts, having close ties to the Ministry of Defence (MoD) especially. In fact, of the 14 UK government contracts the company won in the past year, 11 have been with the MoD.

According the government's contract lookup tool, Thales UK has won 109 contracts in total going back to 2014, altogether worth £2,388,150,343 ($2.99 billion).

Across the pond, Thales operates in 18 US states, with 37 facilities employing more than 5,000 people.

The announcement of the Anglo-French investigation, which was made shortly after market close on Thursday, has already taken a sizeable toll on the company's share price. As of 0930 UTC on Friday, the price had dropped by 7 percent. ®