Indonesia Prosecutors Charge Navayo CEO in Defense Ministry Satellite Corruption Scandal
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JAKARTA, investortrust.id — Indonesian prosecutors have named Gabor Kuti, the chief executive of Hungarian firm Navayo International AG, as a suspect in a high-profile corruption case tied to a satellite procurement project involving the country’s defense ministry. The case centers around irregularities in contracts and certifications linked to the 123 degrees East orbit satellite slot, spanning the years 2012 to 2021.
The Attorney General’s Office, through its Military Crimes Division, also charged retired Rear Admiral Leonardi, former Head of the Defense Facilities Agency and the project’s commitment-making official, as well as intermediary Anthony Thomas Van Der Hayden.
Brigadier General Andi Suci, Director of Enforcement at the Military Crimes Division, said in a press briefing on Wednesday, May 7, 2025, that the three individuals were involved in signing and certifying contracts that bypassed standard procurement procedures.
Leonardi and Kuti jointly signed an agreement on July 1, 2016, for the provision of satellite user terminals and related equipment valued initially at $34.19 million, later revised to $29.9 million. However, prosecutors allege that Navayo International AG was appointed without any competitive tendering process, a violation of procurement regulations.
Navayo’s selection was reportedly based on recommendations from Anthony Thomas Van Der Hayden. Following this, the company claimed to have delivered the contracted equipment to the Ministry of Defense. Four Certificates of Performance (CoPs) were signed by lower-ranking officials Jon Kennedy Ginting and Masri, under the endorsement of retired Major General Bambang Hartawan and Leonardi. These certifications were prepared by Van Der Hayden and allegedly issued without verifying the physical delivery or quality of goods.
“Navayo International AG submitted four invoices to the Ministry of Defense, each backed by CoPs. However, the ministry had no allocated budget for satellite procurement through 2019,” said Andi.
A forensic audit conducted by Indonesian satellite experts concluded that Navayo failed to deliver functional user terminals. Laboratory tests on 550 handsets revealed the absence of required secure chips. Furthermore, Navayo’s own technical documentation—twelve milestone submission volumes—did not meet specifications necessary to develop user terminal software.
These deficiencies led to legal liabilities for the Indonesian state. An arbitration ruling in Singapore ordered the Ministry of Defense to pay Navayo $20.8 million due to its prior issuance of the CoPs. Meanwhile, Indonesia’s Financial and Development Supervisory Agency (BPKP) estimates that the fraudulent procurement caused total state losses of $21.38 million.
All suspects have been charged under multiple articles of Indonesia’s Anti-Corruption Law, including Article 2(1) and Article 3 of Law No. 31/1999 as amended by Law No. 20/2001, in conjunction with Article 55(1) and Article 64 of the Criminal Code.
Photo Caption:
The Indonesian Attorney General’s Office names Gabor Kuti, CEO of Navayo International AG, and two others as suspects in a $21 million satellite procurement scandal. Photo: Puspenkum Kejagung