Indonesian government to investigate Garuda for alleged corruption

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The Indonesian Ministry of State-Owned Enterprises (SOE) announced it will investigate allegations of corruption related to aircraft procurement and leasing processes at state-owned airline, Garuda Indonesia. 

According to the statement issued by the Ministry of SOE on January 11, 2022, the Attorney General’s Office of Indonesia will also launch a probe into allegations of corruption.  

The news was reported after Indonesian authorities noticed “indications of corruption” in the flag carrier’s procurement processes related to its ATR 72-600s fleet. 

“Garuda Indonesia is in the stage of restructuring. However, in the aircraft procurement process there are indications of corruption,” the statement reads. 

As Garuda Indonesia is currently undergoing restructuring, SOE Minister Erick Thohir outlined that the Ministry is “focused on transforming [the carrier, ed.-] to be more accountable, professional and transparent”. 

“We also know is that the data are valid, indeed in the process of procuring its aircraft, the leasing has indications of corruption, with different brands. […] It’s not time to accuse, we act based on evidence,” Thohir said in the statement. 

Cash-strapped Garuda Indonesia has a total of 106 aircraft, 12 of which are ATR 72s. According to Planespotters.com, the airline has temporarily parked 10 ATR 72s.  

 

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