Former CEO of PT Garuda Indonesia Tbk Emirsyah Satar - Photo: Privacy

JAKARTA (TheInsiderStories) – The country’s flight carrier PT Garuda Indonesia Tbk (IDX: GIAA) sued Rolls Royce PLC and Rolls Royce Total Care Services Limited, said the company lawyer on Monday (17/09).

The lawsuit was filed by the sate-owned firm in the Central Jakarta District Court on Sept 13, 2018. For this lawsuit, Garuda asked the two defendants to pay the compensation of Rp640.94 billion (US$44.20 million), which was paid jointly.

The two aircraft manufacturing companies from Manchester, United Kingdom (UK) were accused of cheating on an agreement with Garuda which became the corruption act of its former chief executive Emirsyah Satar.

In Oct. 29.2008, the agreement for the Trent 700 Airbus A330-300 Aircraft Powered Engine canceled due to fraud by the defendants, wrote the Garuda’s Attorney Ery Hertiawan in his lawsuit was quoted from the page of Central Jakarta District Court on Monday (17/09).

From the Garuda Financial Report in first semester (IH) of 2018 it is known that, the agreement was changed several times by both parties. Tariff adjustments were made in 2012, and 2016. While the contract extension was carried out in 2015 and was expired September 2017.

On Dec. 22, 2017, Garuda again received an offer for the extension but until now there has been no agreement on the extension of the contract.

Satar is suspected of accepting bribes from Rolls Royce worth EUR1.2 million and $180,000, also in the form of goods worth $2 million in Indonesia and Singapore. Bribes to the former CEO were allegedly carried out in order to pass the procurement of Airbus machines manufactured by Rolls Royce throughout 2005-2014.

In addition to Satar, the Corruption Eradication Commission also ensnared the Managing Director of PT Mugi Rekso Abadi Soetikno Soedarjo. He allegedly became an intermediary for the Rolls Royce and Satar. Two have been named as suspects by the corruption agency in January 2017.

In January 2017, Rolls Royce was sentenced to pay a GBP671 million penalty after has been proven to have committed bribery in several countries to smooth its various projects, one of it came from Indonesia.

US$1: Rp14,500

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