Jakarta, 7 August 2019. Following a two-year investigation, the Corruption Eradication Commission (KPK) discovered new facts that escalated the scale of the case handling related to the national flag carrier PT Garuda Indonesia.
KPK has found sufficient initial evidence to name three suspects: ESA (President Director of PT Garuda Indonesia (Persero) Tbk for 2005-2014) and SS (Beneficial Owner of Connaught International Pte. Ltd.) for the money laundering case; and HDS (Technical Director of PT Garuda Indonesia (Persero) Tbk for 2007-2010) for the bribery related to the procurement of airplanes and airplane machines from Airbus S.A.S. and Rolls-Royce P.L.C.
ESA and SS allegedly violated Article 3 or Article 4 of Law No. 8/2010 on Money Laundering Prevention and Eradication juncto Article 55 (1)-1 of the Criminal Code. HDS, meanwhile, was charged with Article 12a or Article 12b or Article 11 of Law No. 31/1999 on Corruption Crime Eradication as amended by Law No. 20/2001 on the amendment of Law No. 31/1999 on Corruption Crime Eradication juncto Article 55 (1)-1 of the Criminal Code.
When ESA served as the President Director and HDS as the Technical and Fleet Management Director, they signed purchasing contract worth billions of dollars within 2008-2013 with four airplane producers. The contracts were for the purchase of Trent Series 700 machine and total care program from Rolls Royce; the purchase of Airbus A333 and Airbus A320 airplanes from Airbus S.A.S; the purchase of ATR 72-600 airplane from Avions de Transport Regional (ATR); and the purchase of Bombardier CRJ 1000 from Bombardier Aerospace Commercial Aircraft.
As business consultant of Rolls-Royce, Airbus and ATR, SS allegedly received commission from the three companies, as well as from Hollingsworth Management International Ltd (HMI), Bombardier sales representative in Hong Kong. The commissions were paid following SS’ success in assisting the contract signing between Garuda and the four producers. SS allegedly gave ESA and HDS good and money placed in Singapore and Indonesia.
In handling the case, KPK worked with various parties in the country, as well as law enforcers overseas, particularly the Corrupt Practices Investigation Bureau (CPIB) in Singapore and the Serious Fraud Office (SFO) in the United Kingdom.
To maximize the return of state money, KPK is currently tracking related assets and cash allegedly received and used by ESA and HDS both in Indonesia and abroad. So far, KPK managed to confiscate a house in Pondok Indah area, South Jakarta. Singaporean law enforcers, meanwhile, seized an apartment owned by ESA and blocked several banking accounts in the country.
KPK also suspected the involvement of several foreign producers whose holding companies are located in different countries. Therefore, KPK opens its door for cooperation with lawmakers in those countries related to this case.
For further investigation purposes, ESA and SS have been arrested and will be kept for the next 20 days in KPK Detention Center branch of Class I East Jakarta Detention Center.
For more information, please contact:
The Corruption Eradication Commission
Jl. Kuningan Persada Kav 4, South Jakarta