Golden Agri subsidiary: ‘Shocked’ by Indonesian corruption arrest

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Golden Agri-Resources subsidiary Binasawit Abadi Pratama, or BAP, said on Sunday that it was “shocked” by allegations from Indonesian authorities about suspicions its employees might have committed bribery.

Reuters reported on Sunday that Indonesian anti-corruption agency, known as KPK, arrested seven people, including a senior executive at Golden Agri-Resources’ subsidiary Sinar Mas Agro Resources and Technology (SMART), Edy Saputra Suradja, as well as CEO of PT BAP, Willy Agung Adipradhana. Shenton Wire was unable to contact Edy Saputra Suradja or Willy Agung Adipradhana for comment.

According to the Reuters report, KPK deputy chief Saut Situmorang there are allegations members of parliament may have been bribed to prevent an investigation Binasawit’s permits and waste-treatment.

Golden Agri said in a separate statement that it would cooperate fully with the investigation.

“GAR expects its Indonesian-based operations and subsidiaries to be managed in accordance with the law and regulations of the country,” it said.

BAP said it would cooperate fully with the KPK investigation and conduct an internal investigation.

“As a law-abiding corporation, with a commitment to the principles of good corporate governance and anti-corruption, PT BAP is shocked by the allegations of bribery,” it said in the statement filed to SGX.

“Should it be determined that there has been a breach of our code of conduct and anticorruption principles and practices, we will not hesitate to take the appropriate and immediate action to sanction the person or persons involved,” BAP said.

BAP also disputed allegations that its waste management practices contributed to pollution in Lake Sembuluh and it will engage an independent audit of its practices.

In a separate statement, PT SMART said it “deeply regrets” the KPK announcement and that it had accepted the resignation of Edy Saputra Suradja, who was a director at BAP as well as a vice president director at PT SMART, effective immediately.

“Suradja offered his resignation expressing a desire to avoid any further disruption to PT SMART Tbk as a result of the investigation into his role in PT BAP,” the statement said.

PT SMART said that while the KPK investigation was into interactions between BAP employees and the Central Kalimantan House of Representatives, it would conduct its own internal investigation of the allegations.

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