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SOE Minister Erick: Garuda smuggling scandal takes place ‘systematically’

09 December 2019 14:31

JAKARTA - SOE Minister Erick Thohir said that the smuggling of a Harley-Davidson motorcycle and two Brompton folding bicycles on board a new Airbus A330-900 aircraft operated by PT Garuda Indonesia (Persero) Tbk (GIAA) took place systematically.

“This happened systematically, and I’m sure it was not done individually. In terms of legal aspects, anyone conspiring to commit a crime will be implicated,” said Mr Thohir at the #PrestasiTanpaKorupsi (Achievement Without Corruption) event held at 57 Public Vocational School in Pasar Minggu, South Jakarta as quoted by Bisnis.com, Monday (9/12).

Following the scandal, four members of the flag carrier’s board of directors, namely CEO Ari Askhara, Technical and Service Director Iwan Joeniarto, Cargo and Business Development Director Mohammad Iqbal, and Human Capital Director Heri Akhyar, have been sacked. In addition, Mr Askhara has been found to be the owner of the Harley-Davidson smuggled on board the ferry flight.

For the time being, Garuda Finance and RIsk Management Director Fuad Rizal has been appointed as an acting CEO. Mr Rizal will serve in the position until a new CEO is appointed at the airline’s EGM, scheduled to be held in January next year.

“Within my authority as SOE Minister, I can ensure that a certain corporate process must be followed, and such process differs for public and private companies. We need to recruit competent people to monitor and manage our 142 SOEs,” said Mr Thohir.

The legal process related to the scandal, Mr Thohir added, has been fully turned over by the Ministry of SOEs to the Directorate General of Customs and Excise and the police. So far, he has not commented on whether any of the dismissed Garuda director will be formally named a suspect.

“There will be a process that follows Customs’ report to the police… I can’t comment on whether any [of the directors] will be named a suspect,” Mr Thohir concluded. (MS)

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