TEMPO.CO, Jakarta - Garuda Indonesia has filed a lawsuit against Rolls Royce for allegedly committing frauds for an agreement signed by the two companies. Garuda submitted the lawsuit to the Central Jakarta District Court on September 13.
Garuda said that the British company was fraudulent in the engine treatment agreement for 700 units of Airbus A330-300.
In the lawsuit, the flagship airline demands that the agreement titled TotalCareTM Agreement for the Trent 700 Engine Powered Airbus A330-300 Aircraft (Contract Reference: DEG 5496) No.DS/PERJ/DE-3236/2008 should be null and void because Rolls Royce committed fraud. For the losses incurred, Garuda demanded to be compensated Rp640.94 billion.
The airline's lawyer Setiawan declined to comment on the case. Garuda CEO Ari Askhar was also unavailable for comments.
Garuda Indonesia and Rolls Royce made headlines several months ago following reports from the UK's Serious Fraud Office (SFO), which said that the engine producer was involved in bribery cases in several countries including Malaysia, Thailand, China, Brazil, Kazakhstan, Azerbaijan, Irak, and Angola.
Emirsyah Satar, the CEO of Garuda Indonesia at that time, was named a suspect for his allegedly receiving a bribe from Rolls-Royce PLC to help secure the procurement of Airbus SAS jets and engines produced by the British company from 2005 to 2014.
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