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Bribery scandal rocks state-owned steelmaker PT Krakatau Steel

Steel News - Published on Mon, 25 Mar 2019

Image Source: The Jakarta Post
The Jakarta Post reported that Indonesia’s Corruption Eradication Commission KPK has named Mr Wisnu Kuncoro, a director at state-owned steel manufacturer PT Krakatau Steel, and three business executives suspects in a case of alleged bribery related to procurement projects. Mr Wisnu, the company's production and technology director, allegedly received kickbacks to grant the projects to machinery supplier PT Tjokro Bersaudara (Tjokro Group) and engineering and manufacturing company PT Grand Tech after executives of the companies agreed to pay commitment fees to him. Mr Alexander Muskitta, a broker, allegedly received Wednesday a check amounting to Rp 50 million from Grand Tech president director Kenneth Sutardja, while Tjokro Group chief operating officer Kurniawan Eddy Tjokro allegedly handed USD 4,000 and Rp 45 million to Alexander at a coffee shop in South Jakarta. Mr Alexander, suspected to have acted under Wisnu’s orders, is said to have later put the money in his own bank account.

The antigraft body arrested Wisnu on Friday along with Alexander at a shopping mall in Bintaro, South Tangerang, while the latter was delivering Rp 20 million in cash as part of the alleged kickbacks. It also detained Kenneth on the same day at his house in Kelapa Gading, North Jakarta, while Kurniawan still remains at large.

The KPK also arrested on Friday Krakatau Steel blast furnace general manager Hernanto, along with his driver, in Kuningan, South Jakarta, while the company's maintenance and facilities general manager, Heri Susanto, was caught in Cilegon, Banten. They have not been named suspects.

Krakatau Steel, established in 1970, has become a leading steel producer. The steel company, which operates in Cilegon, Banten, has suffered losses for the past six years. As of the third quarter of 2018, the publicly listed company recorded a loss of USD 37.38 million, down 50.19% from the same period in the previous year.

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Posted By : Rabi Wangkhem on Mon, 25 Mar 2019
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