One year on: IFALPA’s representative to ICAO, pilot and lawyer on ongoing prosecution of Garuda Indonesia Flight 200 pilot

Wednesday, March 12, 2008

Almost exactly one year ago, on March 7, Garuda Indonesia Flight 200 crashed during landing at Adisucipto International Airport, near Yogyakarta, after a scheduled domestic Indonesian passenger flight. 21 people – 16 Indonesians and five Australians – were killed when the Boeing 737-400 overshot the runway, crossed a road, struck an embankment and burst into flames in a rice paddy. Overall, the plane had traveled 252m beyond the extreme end of the runway.

The final report, released in October, blamed pilot error for the disaster. The report stated that the aircraft had approached at a speed far exceeding that at which the wing flaps could properly operate, and attempted to execute a landing at 408 kph (254 mph), which is 160 kph (100 mph) above the safe speed. It also found that captain Marwoto Komar had ignored fifteen activations of the Ground Proximity Warning System (GPWS) informing Mr Komar that the aircraft was flying at a speed beyond that at which it could safely land, but he failed to abort.

It also commented that he missed one further opportunity for emergency evasive action when the airliner struck the runway and bounced into the air, at which point co-pilot Gagam Rochmana requested a ‘go-around‘ procedure be initiated, but was also ignored. It further criticised Mr Komar for singing during final approach, a direct violation of the Garuda Basic Operations Manual, which calls for activation of the Sterile Cockpit Rule at 10,000 feet and below.

Mr Rochmana was also criticised for his failure to take control away from Mr Komar when it became apparent that the aircraft was being operated in an unsafe manner. However, the report did note that Garuda Indonesia had failed to give him any simulator training replicating a situation whereby the co-pilot would take over control duties from the pilot in charge due to unsafe handling of the plane; in fact, training was found to be inadequate for both members of the cockpit crew.

Further criticisms were also leveled at airport and governmental authorities for failures in their respective roles to provide safety features and to enforce regulations.

However, the Indonesian authorities have recently generated intense controversy by deciding to prosecute Mr Komar for his role in the disaster. The move has been pushed for by some, but met with opposition by others.

Alexander Downer, Australian foreign minister at the time of the crash, immediately said “…I am very glad that they have reached a point now where they have charged the captain of the aircraft.” The unusually high number of Australians amongst the 140 passengers on board was attributable to a visit by Mr Downer.

One of those was Morgan Mellish of the Australian Financial Review, who died in the crash. His sister, Caroline Mellish, had specifically called for prosecution to be avoided, saying “I think having 21 deaths on your conscience is probably enough. I don’t think prosecuting the man is going to make any difference.”

There were fierce calls for prosecution of both pilots immediately after the report’s release, with Downer himself pressuring the Indonesian authorities, citing the “very credible report” and saying “I’ve asked our ambassador today (October 24) to make it absolutely clear to the Indonesians that we want people prosecuted for this accident. I want to see people who have negligently allowed Australians … to be killed, I want to see those people brought to justice.”

Australian Opposition Leader Kevin Rudd also made clear a desire for prosecutions, saying he had telephoned secretary-general of Indonesia’s foreign affairs department and former ambassador to Australia Imron Cotan, telling him that he wanted those responsible “prosecuted to the absolute full”. “This is a serious matter, many Australians visit Indonesia, Garuda is an often used airline and there is a basic national interest at stake here as well,” he said.

National Transport Safety Committee chairman Tatang Kurniadi said at the time that no information from the report could be used in any criminal or civil liability investigations. “I would like to go back to the objective of this, the report was made by NTSC for safety purposes only, not for blaming, he said. “If any institution wants to … follow up that accident, that’s their own decision. The report contained the results from the cockpit voice recorder and flight data recorder, but according to international regulations on aviation these black boxes are not allowed to be used for… liability purposes. We will not give police or any institution (information) other than for safety purposes only – it’s in international regulations and we want to follow those regulations.” He also confirmed that investigators cannot speak to the police, with the only permitted testimony under the legislation being to testify at a court hearing, and pointed out that the document does not actually appoint any blame.

The international legislation he was referring to is probably the Convention on International Civil Aviation, which stipulates that accident reports and related material, specifically transcripts of interviews, communications with crew and cockpit voice recorder and flight data recorder (collectively known as black boxes) readouts, must not be used for any purpose other than determining the cause of an accident or incident. The only possible exception to this is where potential benefit would outweigh the “adverse domestic and international impact” on the investigation in question or any other either in progress or in the future. This legislation is in place to provide protection to witnesses on the basis that without it they may be less likely to cooperate with investigational procedures.

The law caused was actively opposed by some. Aridono Sukman, the police member in charge of the criminal investigation, said that the contents of the black box were vital evidence. Officials commented that some relatives had expressed their frustration over the legal challenges involved in the prosecution effort.

Early in February Mr Komar was arrested; he has subsequently been charged with manslaughter charges which carry a maximum sentence of five years’ imprisonment. The London-based International Federation of Air Line Pilots Associations (IFALPA) issued a press release condemning this move, saying that further investigations are needed into the crash, and that criminal proceedings could prevent an accurate version of events from ever being known. Specifically, the release said that “IFALPA believes that the circumstances of the accident as set forth in the final report of the Indonesian investigation authority leaves many serious questions concerning the crew actions prior to the accident. Central to these concerns are the underlying reasons for the reported behavior of Captain Marwoto Komar. Experienced pilots have considerable difficulty in attempting to explain what is reported in the context of normal airline operations. The Federation believes that the explanations proffered by the report do not square with the collective experience of our members.” The release went on to state the opinion that prosecution may bring total foreclosure to the case and could only be counterproductive. It also said “He remains a professional who was involved in an unfortunate tragedy.”

One possible explanation had previously been suggested by the head of the Garuda pilots association, Stephanus Geraldus. He said that marital problems between Mr Komar and his wife Norma Andriani were “common knowledge” and was backed up by an industry analyst and pilot who said he believed the couple had been arguing late into the night, and expressed concern that the report had not addressed psychological issues. Mr Geraldus also said sleep deprivation could have contributed, with the flight crew reporting for duty at 4:30 am and the flight departing an hour and a half later.

The report had hinted at problems, saying The pilot was probably emotionally aroused because his conscious awareness moved from the relaxed mode “singing” to the heightened stressfulness of the desire to reach the runway by making an excessively steep and fast, unstabilised approach,” and “His attention was fixated or channelised on landing the aircraft on the runway and he either did not hear, or disregarded the GPWS alerts, and warnings, and calls from the copilot to go around.” It is also known that Mr Komar had been under police surveillance, during which time he was receiving psychological treatment.

The Indonesian Pilot’s Association has also said that the criminal prosecution should be avoided, arguing that the only people who can judge whether mistakes were made in aviation are those professionally involved and not the police. There were protests in Jakarta demanding his release and dozens of pilots across the nation also campaigned. Meanwhile, two survivors, Adrianus Meliala and Retno Gunowati, went to the House of Representatives (DPR) to challenge those opposed to legal processes against the pilot.

Mr Komar was released on police bail on February 15, and is currently awaiting trial. He was forced to resign late in February with being fired his only alternative, and his licence has been suspended. He is believed to be the only man ever prosecuted in Indonesian history over an airliner crash.

The issues thrown up by this ongoing case have now been exclusively commented on for Wikinews by Paul McCarthy. Mr McCarthy is IFALPA’s representative to the International Civil Aviation Organisation (ICAO). He is both a pilot – as are all of IFALPA’s roughly 100,000 members – and a lawyer, and is an acknowledged expert on issues concerning the criminal liability of pilots. Mr McCarthy’s comments, obtained by email via IFALPA media representative Gideon Ewers are available below.

Former Satyam CEO Raju, his brother and CFO arrested and detained in profit-fraud scandal

Monday, January 12, 2009

Byrraju Ramalinga Raju, founder and chairman of Satyam Computer Services, and his brother, B. Rama Raju, the company’s managing director, were arrested late Friday by Andhra Pradesh police. The brothers were placed under judicial custody in a Hyderabad, India jail and will remain there until January 23. Facing charges of criminal breach of trust (Section 406 of IPC), criminal conspiracy (Section 120-B), cheating (Section 420), falsification of records and forgery (Section 468), and fraudulent cancellation of securities (Section 477-a), they face up to ten years imprisonment if convicted.

After 18 hours of interrogation by the Crime Investigation Department (CID) at the state police headquarters, the Raju brothers were sent to the Chanchalguda prison and slept Saturday night on the floor along with 26 other low-risk inmates.

S. Bharat Kumar, the Rajus’s lawyer, asked the magistrate to issue orders for health monitoring. “His blood pressure is fluctuating and he needs medical treatment,” said Bharat Kumar. Mr. Raju appeared before the court Saturday while a team of doctors visited him after he had complained of chest pain.

Raju has Hepatitis-C, and both brothers have high blood pressure, so health precautions are necessary while imprisoned. Prison rules mandate service of jail food thrice a day. The menu includes 650 gm of rice thrice a day with 250 gm of vegetable curry and 125 gm of ‘daal’ plus tea twice a day.

Satyam’s chief financial officer Vadlamani Srinivas, who was also arrested Saturday, had undergone preliminary investigation and appeared Sunday before a special court, according to A. Sivanarayana, Andhra Pradesh additional director general of police. Srinivas was remanded to judicial custody until January 23 by Mr. D. Ramakrishna, Sixth Chief Metropolitan Magistrate, and sent to the Chanchalguda jail with the Raju brothers after interrogation by CID’s Crime Branch (the CB-CID). During his Saturday night arrest and probe by CB-CID, Srinivas made revelations which are contained in his confession letter as submitted to Network 18. “According to me fixed deposits are unreal and fictitious which were managed and was an understanding between the audit section management,” Srinivas stated.

The Hyderabad court on Monday postponed the bail hearings of the Raju brothers and Srinivas to January 16. To be defended by a battalion of 25 lawyers, the three accused will remain in Chanchalguda Central Jail until further court order. The Raju brothers were shifted Sunday to a mid-size Old Hospital Barrack cell shared with a bootlegger.

Contents

  • 1 The offences
  • 2 About Satyam Computer Services
  • 3 Impact on Satyam Computer Services finances and reactions
  • 4 Related news
  • 5 Sister links
  • 6 Sources

In 2008, the company struggled to purchase two infrastructure companies founded by family members of company founder and CEO Dr. Raju – Maytas Infrastructure and Maytas Properties – for $1.6 billion, despite concerns raised by independent board directors. Dr. Raju tendered his resignation on January 7 after due notice of falsified accounts to board members and the SEBI.

Since January 7 when two lawsuits were commenced, dozens of other class action law suits were filed against Satyam for hundreds of millions of dollars damages based on fraud in the United States District Court for the Southern District of New York in Manhattan, among others. The securities fraud class-action lawsuits have been filed on behalf of investors who bought Satyam American Depositary Receipts (ADRs) since 2004.

On Wednesday Dr. Raju admitted to falsifying and overstating Satyam’s cash reserves by $1B US dollars (£661m) or 94% of its cash and bank balances on books at the end of September.

The fraud was perpetrated several years ago to bridge “a marginal gap” between actual and accounting books operating profits, and continued for several years. “It was like riding a tiger, not knowing how to get off without being eaten,” B. Raju said.

In a letter to the board, Dr. Raju said that neither he nor the managing director had benefited financially from the inflated revenues. Further claiming that none of the board members had any knowledge of the dire company situation, he noted that Satyam’s balance sheet as of the September 30, 2008, carried inflated figures for cash and bank balances of INR 5,040 crore (as against INR 5,361 crore reflected in the books). He alleged it also carried an accrued interest of INR 376 crore which was non-existent. He confessed that he himself prepared an understated liability of INR 1,230 crore on account of funds amid an overstated debtors’ position of INR 490 crore (as against INR 2,651 crore in the books).

Indian analysts have compared the Satyam-Raju scandal to the infamous American Enron scandal. Immediately following the media expose, PricewaterhouseCoopers, auditor of Satyam’s accounts, was set to be probed for complicity in the controversy. Times Now has reported that the Andhra Pradesh CID arrested PricewaterhouseCoopers (PWC) representative Gopal Krishnan for investigation on Saturday night.

New York-listed Satyam Computer Services Ltd., India’s fourth-biggest software firm, is a consulting and information technology services company based in Hyderabad, India. Founded in 1987 by Dr. Byrraju Ramalinga Raju, Satyam’s network spans 67 countries on six continents. It employs 53,000 professionals in India, the United States, the United Kingdom, the United Arab Emirates, Canada, Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia. Its monthly salary outflow is estimated at six billion rupees ($125 million). Deriving more than half of its revenues from the United States, it serves 700 global companies, 185 of which are Fortune 500 corporations.

Satyam’s clients include Nestle, Ford, General Electric Co., General Motors Corp., Nissan Motor Co., Applied Materials Inc., Caterpillar Inc., Cisco Systems Inc. and Sony Corp., and brought in about $40bn last year.

In December 2008, a failed acquisition attempt involving the company Maytas led to a plunge in Satyam’s share price. After Wednesday’s confession, Satyam stocks fell further by more than 70%, while the BSE SENSEX dropped to 7.3% Wednesday, causing the removal of Satyam Computer Services from its indices on Thursday. The shares free fell to 11.50 rupees on Friday, their lowest level since March 1998, compared with around last year’s high of 544 rupees.

The New York Stock Exchange has terminated trading in Satyam stock as of January 7, while the National Stock Exchange of India said it will remove Satyam from its S&P CNX Nifty 50-share index from January 12.

India’s biggest-ever corporate fraud has seriously tainted India Inc.‘s strong corporate governance image. “The admission of fraud in financial affairs has created an adverse impression in the minds of trade, business and industry across the world,” the Indian government admitted. The government intervened on Friday night, dismissing Satyam’s board of directors, announcing it will appoint representatives to manage the affairs of the insolvent outsourcing giant. The board would meet within seven days. Dr Yeduguri Samuel Rajasekhara Reddy, chief Minister of State of Andhra Pradesh, India, on Sunday said that the main agenda is to protect the jobs of the software professionals. “We are taking all needful steps in coordination with the government of India to ensure that the jobs of 53,000 engineers are protected and the shareholders’ money is salvaged,” Reddy said.

“We are working on the names. The Satyam case is an aberration. The credibility of the Indian corporate sector in general, and IT sector in particular, should not be allowed to suffer because of this.” Prem Chand Gupta, the Corporate Affairs Minister said. The Federal Government of India appointed a three-member independent board with full authority for Satyam on Sunday and was set to convene within 24 hours. “We have appointed Deepak Parekh, chairman of Housing Development Finance Corporation, Kiran Karnik, former president of IT industry body NASSCOM and C. Achutan, former member of Securities and Exchange Board (SEBI) of India,” Mr. Gupta said.

In early Monday trading (0535 GMT) after the creation of the three-member board, Satyam shares rocketed upwards 60% to 38.15 rupees, even though the main Mumbai market was down more than 2%. BBC reported that Satyam shares have jumped 51% to 36.05 rupees on Monday after the stock lost 87% last week. “The constitution of the new board is seen as a positive step by the market. It’s a confidence boosting measure,” K.K. Mital, Globe Capital, New Delhi head of portfolio management services said. “But the rally will depend largely on the financial situation at the company and the kind of measures that are taken to improve liquidity,” he added.

The Company Law Board, however, has requested Satyam’s interim board not to implement its decisions. “We are asked by the Company Law Board not to implement the decisions of the board. But we are allowed to continue our activity. The team which was constituted recently is continuing its work,” Satyam head global marketing and communications, Mr. Hari Thalapalli, said.

Lazard Ltd., who has a 7.4% stake in Satyam, sought representation on the new board and wrote as much to The Indian Ministry of Corporate Affairs. “As the largest shareholder in the company, we want to be consulted in whatever decisions are being taken by the Indian government. We have written to the Ministry of Corporate Affairs and are awaiting a reply from them,” Hitesh Jain, a partner at ALMT Legal, who claimed to represent Lazard, said. “It is a fair proposal and we will take a decision as and when we clear other issues. No decision on this has been taken yet,” P.C. Gupta replied.

Meanwhile, the Securities and Exchange Board of India (SEBI) also announced it will try to control the damage and take steps to boost investor confidence. “This exercise will be undertaken after the third quarter results and is expected to be completed by end of February this year,” a SEBI official statement said. A SEBI team is also investigating acting-CEO Ram Mynampati whose salary was greater than that of founder Dr. Raju and all the directors combined. Dr. Raju had just one fifth of Mynampati’s total package of over Rs 3.5 crore as of March 2008. All the directors comparably received only a total of Rs 2.6 crore as salary, commissions, sitting fees, professional fees and other receivables.

Further, the Andhra Pradesh Police CID and teams assigned by the Economic Offences Wing of the CB-CID conducted searches Sunday of homes of the accused including the ex-CFO’s office to gather documentary evidence about the financial fraud.

Three die in Cornwall, UK caravan park of suspected carbon monoxide poisoning

Monday, February 25, 2013

Carbon monoxide poisoning is thought to have been the cause of the deaths of three people and one Jack Russell dog in a caravan park in Cornwall in South West England. Cornwall Fire and Rescue Service (CFRS) were alerted to the incident in Tremarle Home Park in the town of Camborne at 12:56 UTC on Saturday.

We have seen a big increase in the number of carbon monoxide incidents in Cornwall over recent years

Inspector David Eldridge said Devon and Cornwall Police were alerted to the caravan park incident after “a helper had been unable to get a reply from an elderly couple who lived in the caravan”. He said that upon their arrival, “We were able to see that there was a figure sat in a chair but they were unresponsive to knocks at the door.” CFRS workers called to the area “forced entry into the property and found that the three occupants were all dead”, Inspector Eldridge said. A hazardous material advisor was also present at the scene in North Roskear. The Health and Safety Executive is now investigating the incident but the deaths are not considered as being of a suspicious nature.

The three fatalities have been identified as Audrey Cook, aged 86, her husband Alfred, aged 90, and Maureen, their 46-year-old daughter. David Biggs, a member of Camborne Town Council, said the incident came as “a shock” to him; Tremarle Home Park is “a well established facility and is very well run”, according to him. Biggs described the loss of three lives as an “appalling tragedy”.

The incident came five days after Cornwall Council announced its Family Placement Service would launch a joint venture with Cornwall Fire and Rescue Service to place carbon monoxide detectors in the houses of foster carers. The programme, entitled ‘Be Gas Safe’, has seen 200 carbon monoxide detectors and 2000 leaflets to raise awareness about carbon monoxide being given to CFRS. Mark Blatchford, Group Manager of CFRS, said: “We have seen a big increase in the number of carbon monoxide incidents in Cornwall over recent years”. He described carbon monoxide detectors as being “as important as a smoke alarm as it provides a valuable early warning”.

Carbon monoxide is a poisonous, colourless, tasteless and odourless gas which is created when such carbon-based fuels as oil, gas, coal and wood are not completely incinerated. The human body’s capacity to hold oxygen in the blood can be reduced by inhalation of the gas, which in turn may cause death. The Gas Safe Register has said dizziness, headaches, queasiness, lack of ability to breathe, fainting and losing consciousness are all symptoms of a person experiencing carbon monoxide poisoning.