On May 1, 2025, Canada-based Bombardier Inc. announced in its Q1 2025 Quarterly Report that the U.S. Department of Justice had closed two corruption investigations into the company, both of which were launched in 2020. The investigations related to (1) a 2013 contract for the supply of signaling equipment and services to Azerbaijan Railways ADY (the “ADY Contract”) and (2) the acquisition and lease of a Bombardier aircraft by Garuda Indonesia (Persero) TBK (“Garuda”), the majority state-owned airline in Indonesia. A third investigation into possible corruption in South Africa appears to remain ongoing.
With respect to the ADY Contract, Swedish authorities began investigating possible corruption issues in 2016. In 2017, Swedish authorities charged a then-employee of Bombardier’s Swedish subsidiary with “aggravated bribery” and, alternatively, “influence trafficking.” According to Bombardier, the employee was acquitted of all charges at trial, and no charges were filed against the subsidiary. Although prosecutors initially appealed the decision, Bombardier reported that Swedish authorities confirmed in June 2019 that they were no longer appealing the acquittal of the influence trafficking charge. Bombardier stated that the appeal of the aggravated bribery charge was still pending with the Swedish Court of Appeal. Bombardier also reported that the ADY contract is being audited by the World Bank Group.
With respect to the Garuda matter, in May 2020, the Indonesian Corruption Court convicted the former CEO of Garuda, along with an associate, on corruption and money laundering charges in connection with five procurements involving different manufacturers. One of the procurements related to the acquisition of a Bombardier airplane. Indonesian authorities did not bring any charges against Bombardier or its directors, officers, or employees. Bombardier also reported that, in 2021, Canadian authorities launched an investigation into the Garuda transaction. According to Bombardier, Canada’s investigation of the Garuda transaction continues.
Bombardier also indicated that a third DOJ investigation into a matter in South Africa remained opened. According to Bombardier, in 2018, South African authorities informed Bombardier that they were investigating possible irregularities with respect to multiple procurements from multiple companies regarding the supply of over 1,000 locomotives to the state-owned train operator Transnet Freight Rail. Of those procurements, Bombardier was responsible for supplying 240 TRAXX locomotives. In the Quarterly Report, Bombardier stated that, based on information gathered to date during its internal review, it had no reason to believe that the company was involved in any wrongdoing. Bombardier also said that while this matter related to a business that Bombardier had divested as part of a sale to Alstom, Bombardier was managing the response to the investigation by South African authorities, and that it remained “liable to Alstom . . . under certain circumstances.” Bombardier stated the investigation by South African authorities “may be continuing.” The DOJ investigation of this conduct remains ongoing, and Bombardier said it was cooperating with the DOJ’s requests.