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Jakarta Post

Detention of three PAL graft suspects extended

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, June 22, 2017   /   06:37 pm
Detention of three PAL graft suspects extended Disgraced: State shipbuilder PAL Indonesia president director M. Firmansyah Arifin enters a Corruption Eradication Commission (KPK) vehicle after undergoing a questioning on March 31. (Antara/Sigid Kurniawan)

Corruption Eradication Commission (KPK) investigators have extended the detention of three suspects in an alleged bribery case surrounding the sale of two strategic sealift vessels (SSV) from state-owned shipbuilder PAL Indonesia for the Philippine government.

The three suspects are PAL Indonesia president director M. Firmansyah Arifin and the company’s treasury general manager Arief Cahyana and finance director Saiful Anwar.

“Regarding the graft case involving PAL officials, investigators have today extended the detention of three suspects, MFA, AC and SA, for 30 days,” KPK spokesman Febri Diansyah said as quoted by tribunnews.com in Jakarta on Wednesday.

He further said that the detention of Firmansyah and Arief would be extended from June 29 to July 28 while Saiful’s detention would be extended from June 30 to July 29.

On March 31, the KPK named the three PAL officials suspects for allegedly receiving bribes related to the export of the two warships to the Philippines.

As earlier reported, PAL Indonesia won a contract to build two warships for the Philippine Navy. The US$86.96 million procurement project was sealed in 2014, with the involvement of US-based brokerage company Ashanti Sales Inc.

It is suspected that PAL officials and the brokerage firm agreed on a cashback deal from the sale, which accounted for 4.75 percent of the project's profit. Around 1.25 percent of the cashback, or $1.09 million, was allegedly allocated for the PAL officials, while 3.5 percent was reportedly for the brokerage firm.

The KPK also named Agus Nugroho, an Ashanti Sales Inc. official, a suspect in the case. (kuk/ebf)