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Police Follow Up Fraud Complaint at Garuda DPS

Bali Police Said to be Preparing Charges Against Garuda Employees Engage in Ticket Manipulation Scheme.


Bali News: Police Follow Up Fraud Complaint at Garuda DPS
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(9/4/2006)

Following a complaint by Garuda Indonesia's anti-corruption unit on July 3, 2006, Bali police have been intensively investigating possible malfeasance involving members of the national air carrier's Denpasar sales office.

As reported in the Indonesian language Bali Post, Police are pursuing leads involving employees and outside agents involved in tickets sales who purchased tickets from from Guam – Bali – Surabaya denominated in U.S. dollars that were eventually refunded in Indonesian Rupiahs. Using a loop hole in the administrative process, those involved in the scheme obtained a handsome exchange rate profit while causing a substantial loss for Garuda.

Bali police are keeping tight-lipped on the case in which no less than 8 Garuda employees, from both Bali and Jakarta, have been interrogated.

As part of Garuda's ongoing efforts to rationalize and streamline its operations, an internal Committee to Handle Corruption is in place at the airline, headed by Captain Ari Sapari. Captain Sapari, who reported the case of malfeasance in the Bali ticketing office to Bali's Chief of Police, has focused his attention on 4 main cases of corruption at the Airline:

• Corruption within Garuda's Cargo Unit involving outstanding transactions of approximately US$9.5 million.

• The disruption in funds from the Foundation for the Welfare of Garuda's Employee (YKPGA), estimated to have cost the Nation Rp. 28 billion (approximately US$3 million).

• Indications of illegal mark-ups in the purchase of A-330 aircraft by the Airline which form a large portion of the Airline's massive debt owed to European creditors.

• Illegal practices in the sale of tickets by Garuda's Bali branch.


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