Hyundai E&C Denies Bribery Allegations
Corruption Eradication Commission (KPK) of Indonesia announced on Dec. 6 that a former broker of Hyundai Engineering & Construction will be arrested for his alleged involvement in a bribery scandal in Indonesia. Since Hyundai E&C is denying the allegations, a legal battle seems inevitable between the authorities and the Korean contractor.
KPK announced that it will arrest Herry Jung on charges of bribing a local politician in connection with the Cirebon Coal-Fired Power Plant project in West Java.
A KPK official said that KPK is in the process of arresting the suspect and all that remains is to send a summons.
Hyundai E&C is suspected of bribing a high-ranking local official in the process of winning the thermal power plant project in 2019. Fomer Cirebon regent Sunjaya Purwadisastra was sentenced to five years in prison for trafficking in government positions. During the investigation, he stated that he had received a total of 550 million won in bribes from Hyundai E&C on six occasions. However, Hyundai E&C is denying the allegations.
In November 2015, Hyundai E&C won the power plant project for US$727 million.