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KPK and AGO find no corruption in Century case

The Corruption Eradica-tion Commission (KPK) and the Attorney General’s Office said they had not yet found any indication of corruption after questioning 96 witnesses in connection with the Bank Century bailout

Hans David Tampubolon (The Jakarta Post)
Jakarta
Thu, June 10, 2010

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KPK and AGO find no corruption in Century case

T

he Corruption Eradica-tion Commission (KPK) and the Attorney General’s Office said they had not yet found any indication of corruption after questioning 96 witnesses in connection with the Bank Century bailout.

“To date, the investigation has not found any indication of corruption,” KPK deputy chairman Mochammad Jasin said during a hearing with the House of Representatives’ Bank Century Monitoring Committee on Wednesday.

Jasin said the commission had questioned 31 witnesses from Bank Indonesia, 39 from the former Bank Century, 11 from the Deposit Insurance Corporation, two from the Financial System Stability Committee, one witness from the Capital Market Supervisory and Financial Institutions Supervisory Agency and 12 witnesses from other related institutions.

 Also attending the hearing were National Police chief Bambang Hendarso Danuri and Attorney General Hendarman Supandji.

Hendarman acknowledged his institution had found several misuses in the bailout process, but said unless investigators found evidence to prove “state budget loss”, neither the AGO nor the KPK could claim any corruption in the case.

“The audit results from the Supreme Audit Agency don’t indicate the bailout caused any losses to the state budget,” he told the hearing, adding that only the agency, independent auditors or the State Development Finance Comptroller can claim “state budget loss”.

He said that according to the 2001 Corruption Law, four criteria are required to cite an action as corruption: violation of law, gain by the perpetrator, abuse of power, and infliction of losses on the state.
The House declared the bailout flawed in early March and demanded that legal measures be taken against anyone suspected of having committed corruption.

 The bailout was authorized in November 2008 by then Bank Indonesia governor Boediono, who is now Vice President, and then finance minister Sri Mulyani Indrawati, who is now a managing director of the World Bank.

The KPK questioned Mulyani and Boediono on April 29 this year.  

 A member of the committee from Golkar, Bambang Soesatyo, said he was disappointed with the KPK and the AGO investigation results.

He said the House plenary session in March had found 60 indications of misuse of power in the bailout process.

 “We challenge the KPK to expose the case, so that everything will become clear,” he told the meeting.

Sutan Bathoegana, a legislator for President Susilo Bambang Yudhoyono’s Democratic Party, told the National Police, the AGO and the KPK to take more initiative in investigating alleged fraudulent practices in the controversial bailout.

 “Each agency must pick up the ball. Do not wait for the others to make a move,” Sutan, a member of the House monitoring team, said.

 He added that law enforcers should not hesitate to question state officials deemed responsible for the bailout.

 “However, stick to the rule of law, rather than political motives. I believe from your expressions that you will not let yourselves be sidetracked,” he said.

At the end of the hearing, the House monitoring team deemed that the work of the National Police, the AGO and the KPK was not optimum.

Chairman of the team and legislator from the Indonesian Democratic Party of Struggle (PDI-P) Pramono Anung recited the team’s recommendations for the three law enforcement agencies.

“The agencies have to make a legal framework and a timeline to solve the case in accordance with their respective authorities,” he told the hearing.

He added the three agencies must report their progress to the monitoring team every two months. (rdf)

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