United Kingdom' Serious Fraud Office confirmed its investigating plane producer, Bombardier Inc., over suspected bribery and corruption in relation to contracts or orders from PT Garuda Indonesia Tbk (IDX: GIAA) - Photo by the Company

JAKARTA (TheInsiderStories) – United Kingdom (UK) Serious Fraud Office confirmed its investigating plane producer, Bombardier Inc., over suspected bribery and corruption in relation to contracts or orders from PT Garuda Indonesia Tbk (IDX: GIAA). No further information on the cases from the authority.

“In accordance with best practices when such allegations come to our attention, we have launched an internal review conducted by external counsel and we are co-operating with the investigation opened by the UK Serious Fraud Office, which has contacted Bombardier further to the Indonesian judgements,” said the statement released on Thursday (11/05)

Orders from the state-owned flight carrier for A330s and A320s orders had been among agreements probed during a long investigation into allegations of failure to prevent bribery focused on Airbus. Early of this year, Indonesia’ Corruption Eradication Commission announced that former CEO, Emirsyah Satar, was convicted of corruption and money laundering, sentenced to a term of imprisonment and fined.

He was convicted of having received bribe payments from another individual for support in securing contracts for Bombardier, Airbus, ATR and Rolls-Royce. In 2012, he order for 18 CRJ1000s in 2012 and the airline remains an operator of the type.

End of last year, state own enterprises minister, Erick Thohir has dismissed CEO of Garuda, Ari Askhara, after getting more accurate data he involved in smuggling of Harley Davidson and Brompton from UK. He claimed to have valid evidence from the board of commissioners and audit committee and made sure the motorbike was owned by him.

“The purchase was made in April 2019. The payment process is through the finance manager in London. This is a comprehensive process across all SOEs. I am very sad when we want to develop SOEs, but if this happens, it will be in vain,” he told reporters on Dec. 5, 2019.

Because of various problems, in the third quarter of this year, Garuda‘ revenue dropped by 67.70 percent from US43.54 billion to $1.14 billion. In detailed, the revenues from scheduled flights worth of $ 917.29 million, unscheduled flights of $46.92 million, and other income $174. 56 million.

In the quarter, the aviation firm received a foreign exchange gain of $83.35 million after booked an exchange loss of $13.91 million. At the same quarter, the operator recorded a net loss $1.07 billion from a year ago still generated a net profit of $122.42 million.

Written by Editorial Staff, Email: theinsiderstories@gmail.com