Bombardier faces SFO probe over Indonesia contracts
The Serious Fraud Office has confirmed it is investigating aircraft manufacturer Bombardier over suspected bribery and corruption relating to contracts and orders from Garuda Indonesia.
It comes after an Indonesian court sentenced Garuda Indonesia’s former chief executive, Emirsyah Satar, to prison in May for bribery and money laundering offences linked to the procurement of planes and engines from Airbus and Rolls-Royce.
In addition to the eight-year sentence, Satar was also fined IDR 2m (£1.1m).
The SFO declined to give further information on the live investigation into Garuda Indonesia.
In its third-quarter results, Bombardier emphasised no charges were laid against the firm or any of its directors, officers or employers. It has since launched an internal review into the Garuda transactions, which is being conducted externally.
“The Corporation has met with the SFO to discuss the status of the Corporation’s internal review and its potential assistance with the SFO investigation on a voluntary basis,” it said.
At the centre of the probe are five procurement processes involving different manufacturers, including the 2011-2012 acquisition and lease of Bombardier CRJ1000 aircraft by Garuda Indonesia (Persero) Tbk.
Shares in Bombardier dropped 0.85 per cent, erasing gains made earlier in the session. Before markets opened, the Canadian manufacturer reported a wider-than-expected loss for the third quarter.
Bombardier was contacted for additional comment.