Garuda new CEO appointed after smuggling scandal

Garuda new CEO appointed after smuggling scandal

Minister of Transportation Budi Karya Sumadi delivered a statement in Jakarta, Friday (Dec 6, 2019). ANTARA/Juwita Trisna Rahayu/gtm

Jakarta (ANTARA) - State-Owned Enterprises Minister Erick Thohir appointed Finance Director of national-flag carrier Garuda Indonesia Fuad Rizal as new acting CEO of the state-owned company following a smuggling scandal miring the earlier president director Ari Askhara.

"It is confirmed that the new acting president director (of Garuda Indonesia) is the finance director," Transportation Minister Budi Karya Sumadi told the press after addressing a press conference at the Transport Ministers Meeting and Related Meetings here, Friday.

Following the appointment of the new acting CEO, Sumadi made assurance of no disruption to the peak flight schedules ahead of the Christmas and New Year holiday season.

"Garuda Indonesia's operational director and maintenance director will handle all technical issues in terms of flight operations. I believe there will be no further issue," he added.

This week, customs officials reported the finding of some precious contrabands, including spare parts of a vintage 1972 Harley Davidson motorcycle and two Brompton bikes on board a Garuda Indonesia Airbus A330-900 Neo series aircraft.

Minister Thohir remarked at a press conference on Thursday that the illegal goods were allegedly owned by Garuda Indonesia's former CEO Askhara since he had instructed his staff to seek a classic motorcycle last year.

The newly purchased aircraft, which arrived from France last month, was under surveillance of the customs under the plane-zoeking, or a thorough checking procedure, to be conducted on the imported aircraft. Following the search, the customs officials came across some high-end contrabands in the luggage tagged as passenger baggage in the aircraft hull.

Finance Minister Sri Mulyani remarked that the illegal cargo on board might cause tax losses reaching Rp532 million to Rp1.5 billion.


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