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KPK detains former PT DI director over graft case involving fictitious projects
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Corruption Eradication Commission (KPK) chairman Firli Bahuri (center) speaks during a press briefing on the arrest of former PT Dirgantara Indonesia president director Budi Santoso at the KPK headquarters in Jakarta on June 12. (Courtesy of/KPK)
T
he Corruption Eradication Commission (KPK) has detained former PT Dirgantara Indonesia (PT DI) president director Budi Santoso and former commerce director Irzal Rinaldi Zailani, naming both of them suspects in a graft case involving apparently fictitious projects at the state-owned aircraft manufacturer between 2007 and 2017.
KPK chairman Firli Bahuri said on Friday that Budi and Irzal would be detained for the next 20 days for further investigation.
Both were charged under Articles 2 and 3 of the 2001 Corruption Law, which prohibit the abuse of power for personal gain resulting in state losses. Each charge carries a potential 20 years of prison and Rp 1 billion (US$70,509) in fines.
Between 2008 and 2011, PT DI entered partnership contracts with trading companies PT Angkasa Mitra Karya, PT Bumiloka Tegar Perkasa, PT Abadi Sentosa Perkasa, PT Niaga Putra Bangsa and PT Selaras Bangun Usaha.
However, none of the parties ever carried out the work stated in their contracts.
Read also: Activists slam KPK for discussing raise for leaders amid declining public faith
PT DI, nevertheless, allegedly paid the companies a total of Rp 205.3 billion and $8.6 million between 2011 and 2018.
The KPK has asserted that these were entirely fictitious projects.
“We will develop the case, and [possibly] connect it with money laundering crimes,” Firli said in the a press conference on Friday, adding that the KPK had seized a total of Rp 18.6 billion in cash and property allegedly involved in the case.
Firli predicted that the state had lost about Rp 330 billion in the case, judging by the payments made by PT DI.
He added that such state losses were sufficient to give approximately 1 million families social aid during the COVID-19 pandemic.
