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BPK chief grilled over tax fraud case
Current Supreme Audit Agency chief and former taxation director general Hadi Poernomo was questioned Thursday by legislators at a hearing over alleged tax fraud involving business tycoon Paulus Tumewu
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urrent Supreme Audit Agency chief and former taxation director general Hadi Poernomo was questioned Thursday by legislators at a hearing over alleged tax fraud involving business tycoon Paulus Tumewu.
During a two-hour hearing of the House of Representatives’ Commission III overseeing legal affairs, Hadi failed to answer most of the legislators’ questions regarding the case. Investigation into the case was controversially halted by the Attorney General’s Office (AGO) in 2006.
His responses drew the ire of legislators, who accused Hadi of trying to cover up a Rp 399 billion (US$37.6 million) tax evasion allegedly committed by Paulus, the owner of Ramayana Group.
The hearing was frequently interrupted whenever Hadi said he could not give specific information, such as the actual sum that Paulus owed the state in unpaid taxes.
“I beg you to use your conscience to assist us in our effort to uncover the scam. You of all people should know more about this,” Syarifuddin Sudding of the People’s Conscience Party (Hanura) said.
Legislators say Tumewu owed the state Rp 1.6 trillion in unpaid taxes and fines. They alleged that he colluded with tax officials to deflate the figure. He paid Rp 31.9 billion and his case was terminated by the AGO.
Hadi, who aroused controversy when he disclosed that most of his personal wealth of Rp 38 billion came from donations, served as taxation director general between 2001 and 2006 when the alleged tax evasion took place.
He said the AGO issued the letter to halt the case indictment process when he was no longer in office.
United Development Party (PPP) legislator Ahmad Yani criticized the AGO’s decision to halt the prosecution against Tumewu, saying he should have been sent to prison even though he had made a payment.
“Tumewu should have received cumulative sentences, meaning that he should have been sent to prison even though he had paid his debt to the state,” he said.
Hadi said legislators should consult prosecutors regarding the outstanding sum Tumewu allegedly still had to pay.
“I last looked at the figures a long time ago. In the interests of accuracy, I feel it would be proper for legislators to consult with both the investigators and the prosecutors themselves,” he said.
Azis Syamsudin, who heads the working committee, said the committee planned to summon former head of the Jakarta prosecutor’s office, Darmono, “to explain exactly how much Tumewu owes the state according to dossiers.”
