Today
Jakarta
- 30 °C
Other Publications
AGO, police and KPK to review major graft cases
Abdul Khalik , The Jakarta Post , Jakarta | Tue, 03/25/2008 11:20 AM | National
The government said Monday it would review major corruption cases connected to the swindled Bank Indonesia liquidity support (BLBI) funds before deciding whether to reopen them.
If the government decides to reopen the cases, it is also expected to decide whether to hand the BLBI investigations over to the Corruption Eradication Commission (KPK) from the Attorney General's Office (AGO).
Attorney General Hendarman Supandji said his office, the KPK and police on Thursday would discuss all the corruption cases they were handling, including the embezzlement of trillions of rupiah in BLBI funds.
"It depends on the review whether we will reopen the BLBI cases or not," he said at a hearing with the House of Representatives' Commission I on defense, security and foreign affairs.
Coordinating Minister for Political, Legal and Security Affairs Widodo Adi Sucipto, Foreign Minister Hassan Wirayuda, Fisheries and Maritime Affairs Minister Freddy Numberi and Indonesian Military chief Gen. Djoko Santoso were also present at the hearing.
During the 1997-1999 East Asian economic crisis, the government dispensed Rp 640.9 trillion to save the banking system from collapse.
The money included some Rp 144.5 trillion in BLBI funds, which was disbursed to 48 banks to keep them afloat in the wake of a massive withdrawal of foreign capital from the country. However, many debtors abused the liquidity support and embezzled the funds.
The government must pay some Rp 60 trillion each year as interest on the funds, which were covered by foreign and domestic borrowing.
The AGO has been under pressure to reopen the BLBI cases after the KPK arrested state prosecutor Urip Tri Gunawan, who led the probe into the alleged BLBI embezzlement by tycoon Sjamsul Nursalim, on charges of receiving a US$660,000 bribe from Artalita Suryani, a businesswoman close to Sjamsul.
The arrest occurred just two days after the AGO announced on Feb. 29 it had dropped the investigation into Sjamsul, citing lack of evidence.
The AGO then dismissed deputy attorney general for special crimes Kemas Yahya Rahman and director for investigations Muhammad Salim, both direct supervisors of Urip, in an effort to maintain the office's credibility.
"During our internal investigation, we did not find any link between the (Sjamsul) case and the arrest of Urip. But it is the KPK's investigation to establish a possible connection," Hendarman told the House hearing.
He said Urip is currently charged with four crimes, including bribery and extortion.
Several lawmakers suggested it was unlikely Urip was involved in accepting bribes without the knowledge of his superiors.
"Please don't stay on Urip as it is impossible he was acting alone," legislator Permadi told officials in attendance.
"By focusing the case only on Urip," he said, "we have tried to fool the public. We can't do it anymore because people are smarter now."
Another lawmaker, Sidarto Danubroto, urged law enforcers to continue investigating the BLBI cases.
Today's Paper
Weekender
Popular News
Classifieds
What's On
- Jakarta Furniture Fair
06/25/2008 - 07/06/2008, Jakarta Convention Centre - The 16th Indonesia International Motor Show
07/11/2008 - 07/20/2008, Jakarta Convention Centre - INDOBUILDTECH
07/23/2008 - 07/27/2008, Jakarta Convention Centre
Philip Setunga (not verified) — Tue, 03/25/2008 - 4:12pm
It is heartening to note that all three institutions are meeting to sort out the complex problem of investigating the alleged high profile cases of corruption. This suppose that all three institutions, the police, the attorney general's office and the Corruption Eradication Commission, KPK are equally competant, transparent, accountable and are deprived of the culture of impunity. If we were to go by the past records, the records of the police and the AGO are dismal. They have succumbed to the pressures from the vested parties and have contributed significantly to nurturing a culture of impunity. The recent developments where some key members attached to the office of the attorney genral have been found to be complicits, accentuates this point. The police has yet to assert its identiy as a civil organ, accountable to the public and is capable of coducting proper investigations. They still need to shed its military outfit.
Given this poor record, it would be wiser for the KPK to act indepedently, conduct all the investigations and get the AGO to prosecute. If the investigations are inadequate, the KPK can be coerced to conduct further investigations. Since the clue to resolving cases of corruption is proper investigation by parties that have no interest at stake, it must be left to the KPK, which also needs to establish its credentials through thorough investigations leading to prosecution.