PT PAL director named suspect in PT DI graft case

PT PAL director named suspect in PT DI graft case

Logo of the Corruption Eradication Commission (KPK). ANTARA/Benardy Ferdiansyah

Jakarta (ANTARA) - The Corruption Eradication Commission (KPK) named state-owned ship manufacturer PT PAL President Director Budiman Saleh as suspect in a graft case involving fictitious projects at the state-owned aircraft manufacturer PT DI for the 2007-2017 period.

Karyoto, KPK's deputy for law enforcement, stated here on Thursday that the commission, in its investigation, had unearthed the involvement of more parties in the graft case.

"After we have sufficient initial evidence, the KPK conducted an investigation and named BUS (Budiman Saleh) as a suspect on March 12, 2020," he revealed.

The KPK announced the naming of Saleh as a suspect only after his detention on Thursday.

Budiman served as director of aerostructure at PT DI for the 2007-2010 period, Director of Aircraft Integration during the 2010-2012 period, and Director of Trade and Restructurization for the 2012-2017 period.

He was charged under article 2 and 3 of Law No. 31 of 1999 on corruption eradication as amended by Law No. 20 of 2001 junto with article 55 (1) of the Criminal Code.

The KPK had earlier named former president director of PT DI Budi Santoso and former commercial director Irzal Rinaldi Zailani as suspects in the graft case.

During the period between 2008 and 2011, PT DI had entered into partnership contracts with trading companies: PT Angkasa Mitra Karya, PT Bumiloka Tegar Perkasa, PT Abadi Sentosa Perkasa, PT Niaga Putra Bangsa, and PT Selaras Bangun Usaha.

However, none of the parties carried out the work stipulated in their contracts. Hence, the KPK had claimed that these were entirely fictitious projects.

PT DI allegedly paid a total of Rp205.3 billion and US$8.65 million to the companies between 2011 and 2018 that caused the state to incur financial losses to the tune of Rp330 billion.

After the six companies received the payment, a demand was made for the transfer of cash of Rp96 billion to some officials of PT DI, including BS, Irzal, head of selling and marketing Arie Wibowo, and director of trade and restructurization Budiman Saleh. Related news: KPK summons PT DI ex-director Budi Santoso in graft case
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