Garuda Indonesia sues Rolls Royce over fraud claims

Garuda Indonesia is suing British aircraft engine maker Rolls Royce and its subsidiary Rolls Royce Total Care Service for an allegedly fraudulent contract that was signed when Emirsyah Satar, who was later named as a suspect in a corruption case involving the British multinational, was the CEO of the carrier.

The lawsuit was filed to the Central Jakarta District Court last Thursday. Garuda, Indonesia’s flagship carrier, is asking for 640.9 billion rupiah ($43 million) in damages it says it incurred under the contract — the “Total Care Agreement for the Trent 700 Airbus Powered Engine A330-300 Aircraft” — signed in 2008. After two contract amendments and an extension in 2015, the contract expired in September 2017.

The first hearing is set to take place on Wednesday. Garuda Indonesia could not immediately be reached for further details.

Satar spent nine years as the head of Garuda between 2005 and 2014. The former banker was named as a suspect by the country’s anti-graft agency in January 2017 in a multinational bribery scandal involving Rolls Royce, and is alleged to have received more than $3 million in kickbacks through a middleman for engine procurement contracts for Airbus aircraft.

Nikkei Asian Review | September 18, 2018