Ex-Garuda Chief Sentenced for Corruption in Jet Procurement

An Indonesian court has sentenced Emirsyah Satar, former chief of Garuda Indonesia, to five years in prison for corruption linked to improperly procuring jets from Bombardier and ATR. The court found a lack of transparency led to a $610 million loss for the state. Emirsyah's lawyer confirmed the ruling, though no appeal decision has been made yet.

An Indonesian court sentenced the former chief of state carrier Garuda Indonesia to five years in prison for corruption related to the procurement of jets from Bombardier and ATR, said his lawyer.

Prosecutors argued that Emirsyah Satar, who led Garuda from 2005-2014, bypassed proper procedures and board approval in acquiring Bombardier's CRJ and ATR 72 jets in 2011. This lack of transparency resulted in poor jet performance and cost the state about $610 million.

Judge Rianto Adam Pontoh sentenced Emirsyah to jail and imposed a fine of 500 million rupiah ($30,759.77), according to state news agency Antara. Confirming the ruling to Reuters, Emirsyah's lawyer Monang Sagala stated no decision has been made on whether to appeal.

Garuda and ATR declined to comment, while Bombardier noted it conducted an internal review following the allegations. (Exchange rate: $1 = 16,255 rupiah)

(With inputs from agencies.)