JAKARTA. The Audit Board of Indonesia has recommended that PT Garuda Indonesia (Persero) Tbk (GIAA) cancel the partnership between its low-cost subsidiary PT Citilink Indonesia and PT Mahata Aero Technology (MAT). The Audit Board has also asked the airline to restate its 2018 financial statements.
"The Audit Board has examined and evaluated Garuda's financial statements. Thus, it has also asked for the cancellation of the partnership between Citilink and Mahata, and recommended that Garuda restate its 2018 financial statements," said Audit Board Member III Achsanul Qosasih as quoted by Kumparan, Thursday (11/7).
Based on the Audit Board's Special Purpose Examination Report received by Kumparan, the Audit Board said that the connectivity in-flight service partnership agreement numbered CITILINK/JKTSDSOG/PERJ-6248/1018 and all of its amendments mentioned that Citilink CEO only acted on behalf of the company without any authority from Garuda, which meant only Citilink and Mahata were linked in the agreement.
"Thus, Garuda and Sriwijaya Air (another member of Garuda Indonesia Group) have no legal standing [in the agreement]. They also have no right and obligation in the agreement," wrote the report.
Regarding to the agreement's objects, the Audit Board stated that Citilink as the party involved in the agreement had no authority as part of the agreement objects owned by Garuda and Sriwijaya. (AM/MS)