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Ex-Garuda Indonesia CEO named as corruption suspect on Rolls-Royce engines purchasing
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Ex-Garuda Inconesia CEO Emirsyah Satar (Bloomberg/File)
T
he Corruption Eradication Commission (KPK) has named a former president director of state-owned airline company Garuda Indonesia, Emirsyah Satar, a suspect in a case of alleged bribery related to the purchase of aircraft engines from the UK company, Rolls Royce.
“Yes, it’s true,” KPK chairman Agus Rahardjo said as quoted by tribunnews.com in Jakarta on Thursday. He refused to give further details about the matter.
“We will give a press conference on the matter today,” said Agus.
KPK spokesperson Febri Diansyah said the antigraft body had searched four locations in Jakarta on Wednesday for its investigation into the case.
“The amount of [money involved in] the case is quite significant, reaching millions of US dollars,” he said.
According to Bloomberg, Rolls-Royce won approvals in the U.K. and the U.S. for settlements after it said it would pay $800 million in total to resolve bribery probes in both countries as well as Brazil.
The British indictment includes the example of one individual in Indonesia receiving $2.25 million and a Rolls-Royce Silver Spirit car from the company, which has admitted to paying bribes to secure contracts in countries including Thailand, Kazakhstan, Azerbaijan, Angola and Iraq.
Emirsyah served as the chief executive of Garuda for a decade through 2014, overseeing a debt restructuring and an initial public offering that allowed it to expand its fleet to 134 aircraft. He’s currently the chairman of Lippo Group’s MatahariMall.com, or PT Global ECommerce Indonesia.
His performance and contribution as MatahariMall.com chairman have been very positive and the company will respect the legal process, Alvin Aulia, head of communications and partnership, said in a text message.
Garuda slid 2.3 percent to 346 rupiah at the close in Jakarta, the most since Dec. 30, while shares of PT Matahari Department Store, which holds about 10 percent stake in MatahariMall.com, rose 1.3 percent to 14,900 rupiah. (ebf)
