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UK’s antigraft agency probes Bombardier over Garuda transactions

“The SFO confirms it is investigating Bombardier Inc. over suspected bribery and corruption in relation to contracts and/or orders from Garuda Indonesia,” the agency said, adding that while it was a live investigation, it would not provide more comment.

Mardika Parama (The Jakarta Post)
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Jakarta
Fri, November 6, 2020

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UK’s antigraft agency probes Bombardier over Garuda transactions Former president director of Garuda Indonesia Emirsyah Satar leaves the Corruption Eradication Commission (KPK) in handcuffs after being questioned by investigators in Jakarta on Aug. 7, 2019. Emirsyah was detained by the KPK as a suspect in the procurement of 50 aircraft between 2005-2014 for Garuda Indonesia. (JP/Seto Wardhana)

T

he United Kingdom Serious Fraud Office (SFO) is investigating Canada-based airplane manufacturer Bombardier over suspected bribery and corruption related to past deals with Indonesia’s national flag carrier Garuda Indonesia.

The SFO confirmed the ongoing investigation into Bombardier regarding its contracts with Garuda in a statement published on Thursday.

“The SFO confirms it is investigating Bombardier Inc. over suspected bribery and corruption in relation to contracts and/or orders from Garuda Indonesia,” the agency said, adding that while it was a live investigation, it would not provide more comment.

In May, the Jakarta Corruption Court sentenced former Garuda Indonesia president director Emirsyah Satar to eight years in prison after finding him guilty of accepting bribes and engaging in money laundering practices in connection with aircraft procurement, including from Bombardier.

The probed Bombardier procurement is the 2011 to 2012 acquisition and lease of Bombardier CRJ-1000 aircraft by Garuda Indonesia, according to Bombardier’s third-quarter financial report released on Thursday.

Garuda currently has 18 CRJ-1000 jets in its fleet, the airline's data show.

In Bombardier's financial report, the company also acknowledged the SFO investigation into its transaction with Garuda. It stated that the company had met with the UK agency to discuss the company’s internal review and potential assistance in the investigation.

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