Indonesia names jailed ex-Garuda chief a suspect in new graft case

JAKARTA: An ex Garuda Indonesia main convicted of graft is being investigated meant for alleged irregularities in procuring Bombardier and ATR planes, Indonesia’s attorney general mentioned on Monday (Jun 27), in offers the state auditor said led to US$600 mil in losses.

Emirsyah Satar, the flag-carrier’s chief executive from 2005 to 2014, was sentenced to eight years in prison in 2020 meant for bribery and money laundering in buying aeroplanes and engines from Airbus and Rolls-Royce.

The US Department of Justice plus Britain’s Serious Fraud Office are also investigating suspected bribery associated with sales of jets by Canadian airplane maker Bombardier in order to Garuda between last year and 2012.

“This was their responsibility in carrying out the work during their tenure, ” Attorney General Sanitiar Burhanuddin told a news conference.

Satar could not immediately be reached for opinion.

Indonesian condition auditor BPKP discovered Garuda paid an inflated price with regard to 23 Bombardier CRJ and ATR 72 planes, causing high operational costs plus an estimated 8. 7 trillion rupiah (US$594. 39 million) in losses from last year to 2021, BPKP head Muhammad Yusuf Ateh said.

Three other former Garuda executives as well as a former director of local conglomerate REHABILITATION Mugi Rekso Abadi (MRA) were also named suspects.

Garuda, Bombardier and ATR did not respond immediately to requests for comment and MRA could not instantly be reached.

Separately, the lawyer general said condition auditors and his office would jointly review government firms plus organisations in the palm oil sector, in a probe into allegations that a mafia operation got driven up household cooking oil prices for months.

The federal government had requested an audit that will protect palm oil companies’ property size, partnerships with smallholder farmers, and tax reports, among other areas.

Philippines, the world’s greatest palm oil producer, can also be investigating alleged corruption in the issue of palm oil export permits, with a senior trade ministry official and three company executives named suspects.