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SOE Ministry not sole decisionmaker in Garuda’s procurements: Minister
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Ex-Garuda Indonesia president director Emirsyah Satar (Bloomberg/File)
S
tate-Owned Enterprise (SOE) Minister Rini Soemarno said the ministry should not have been the sole decisionmaker in national flag carrier Garuda Indonesia's procurement of aircraft engines from the United Kingdom’s Rolls Royce.
The Corruption Eradication Commission (KPK) recently named the airline’s former president director, Emirsyah Satar, a suspect in a bribery case pertaining to the procurement of aircraft engines from the British company.
Rini said as a publicly listed company since 2011, procurement plans for Garuda must obtain approval from its board of commissioners.
(Read also: Emirsyah Satar’s case not related with corporate activities: Garuda)
“If there is a big amount of money involved [in the procurement], majority shareholders should give approval through an extraordinary shareholders meeting,” she said after a meeting at the Office of the Coordinating Economic Minister on Friday evening.
As the majority shareholder in a state-owned company, the government should always check whether such a procurement plan complies with good corporate governance (GCG) principles, Rini added.
However, Rini claimed she did not have any knowledge of the procurement process during Emirsyah’s tenure as Garuda’s chief executive from 2009 to 2012, as she was only appointed SOE minister in 2014 under President Joko “Jokowi” Widodo administration.
Between 2009 and 2011, the position was held by Mustafa Abubakar, who was later replaced by Dahlan Iskan, currently a suspect in a graft case revolving around the sale of the assets of an East Java province-owned company. (lnd)
