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KPK to probe Garuda for possible graft

The Corruption Eradication Commission (KPK) said on Wednesday that it would question national flag carrier Garuda Indonesia officials in connection to an investigation into a money laundering case implicating former Democratic Party treasurer Muhammad Nazaruddin

Haeril Halim (The Jakarta Post)
Jakarta
Thu, August 14, 2014

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KPK to probe Garuda for possible graft

T

he Corruption Eradication Commission (KPK) said on Wednesday that it would question national flag carrier Garuda Indonesia officials in connection to an investigation into a money laundering case implicating former Democratic Party treasurer Muhammad Nazaruddin.

The 35-year-old politician, who has been convicted of accepting bribes, allegedly bought shares in Garuda using illicitly obtained money.

'€œThe investigation is in progress. If KPK investigators need testimony, they [Garuda officials] will be summonsed for questioning,'€ KPK spokesman Johan Budi said on Wednesday.

Nazaruddin was sentenced to four years and 10 months for accepting Rp 4.6 billion (US$393,380) in the rigged construction of the SEA Games athletes village in South Sumatra. The Supreme Court later increased his sentence to seven years.

Nazaruddin, who controlled many state projects due to his extensive power as the treasurer of the ruling party and lawmaker at the House of Representatives, reportedly accepted about Rp 800 billion to allegedly rig state projects for particular companies every year.

Nazaruddin confidante Yulianis, the former deputy finance director of PT Permai Group, testified that her boss bought a number of shares in Garuda through five companies operated by the holding company. Permai Group was owned by Nazaruddin and allegedly used proxy bids to win projects that were subcontracted in exchange for money.

Yulianis said that about Rp 300 billion of Permai Group'€™s profits from government projects '€” including the SEA Games project '€” was used to buy shares. PT Permai Raya Wisata bought 30 million shares worth Rp 22.7 billion, PT Cakrawala Abadi purchased 50 million shares worth Rp 37.5 billion, PT Exartech Technology Utama 250 million shares worth Rp 124.1 billion, PT Pacific Putra Metropolitan 100 million shares worth Rp 75 billion and PT Darmakusuma 55 million shares worth Rp 41 billion.

Indonesia Corruption Watch (ICW) said the KPK was slow in handling Nazaruddin'€™s money-laundering case, claiming that the case had not progressed since Nazaruddin was charged with money laundering in 2012.

'€œWe urge the KPK to intensify efforts to solve the case and other big cases that have not progressed,'€ ICW researcher Emerson said on Wednesday.

KPK deputy chairman Zulkarnain shrugged off ICW'€™s allegations, insisting that the investigation into the case was ongoing.

'€œThe investigation is progressing. I'€™ve asked KPK investigators to update KPK leaders in a case presentation slated for the near future,'€ Zulkarnain said on Wednesday.

Trisakti University criminal law and money laundering expert Yenti Garnasih said that charging Nazaruddin with money laundering was the best way to recover state funds amassed by Nazaruddin.

Last year, Yulianis claimed that Nazaruddin had used the dirty money not only for personal gain but also to fund Democratic Party activities.

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