ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Business trends

Garuda Indonesia sues Rolls Royce over fraud claims

Case involves allegedly fraudulent deal signed under flag carrier's former CEO Satar

Indonesian flag carrier Garuda is seeking 640.9 billion rupiah in damages from Rolls Royce.

JAKARTA -- 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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more