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F-16, Apache procurement in spotlight

The Defense Ministry has asked the Corruption Eradication Commission (KPK) to help it crack down on graft plaguing the procurement of defense weaponry between 2010 and 2014

Haeril Halim (The Jakarta Post)
Jakarta
Fri, December 2, 2016

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F-16, Apache procurement in spotlight

T

he Defense Ministry has asked the Corruption Eradication Commission (KPK) to help it crack down on graft plaguing the procurement of defense weaponry between 2010 and 2014.

The move came a day after the ministry suffered a major blow following the sentencing of its finance division head between 2010 and 2014, Brig. Gen. Teddy Hernayadi, to life in prison for embezzling US$12 million from the procurement of F-16 jet fighters, Apache helicopters and Hercules aircraft worth trillions of rupiah during the period.

In the latest development on Thursday, the ministry announced that the Air Force’s military police had charged Teddy’s successor, Col. Irwan, with corruption for allegedly swindling tens of billions of rupiah from a separate weaponry procurement in 2014.

The ministry declined to reveal the details of Irwan’s case as the investigation is ongoing.

The announcement of the investigation into Irwan came just two weeks after the KPK provided a tip-off to the ministry that a colonel had Rp 24 billion ($1.7 million) of embezzled funds in his bank accounts.

The ministry’s inspector general, Hadi Tjahjanto, said the ministry wanted the KPK to help with the investigations into the cases.

It was revealed during Teddy’s trial that as many as 53 non-military individuals had benefitted from his dirty money.

“We will also wait for the trial of Colonel IR [Irwan] to see whether there are other parties implicated in his case […]. In addition, we will ask the KPK and PPATK [Financial Transaction Reports and Analysis Centre to help us with the two investigations] especially on non-military offenders,” Hadi told The Jakarta Post on Thursday.

Both Teddy and Irwan served in the role during the administration of former president Susilo Bambang Yudhoyono, who wrapped up his 10-year presidency in October 2014. The country made numerous defense weaponry purchases for the Indonesian Military (TNI) during Yudhoyono’s administration.

Hadi said the post of finance division head gave Teddy and Irwan discretion over the disbursement of funds at the ministry.

Teddy disbursed money for the purchase of F-16 jet fighters, Apache helicopters and Hercules aircraft in amounts higher than what was stipulated in proposals, which led to him collecting $12 million in his bank accounts between 2010 and 2014.

Teddy did not enjoy the money alone, as he used part of it to entertain scores of TNI and ministry officials as well as private individuals during the period.

Hadi said after Teddy and Irwan’s cases were closed, the ministry would continue investigating past defense weaponry procurement projects.

The military court seized Teddy’s assets — including a Toyota Camry sedan; a Toyota Prado; a Ducati Monster motorbike; a plot of land in Kebon Sirih, Jakarta; a town house in Bandung, West Java; a plot of land in Soreang, Bandung; $74,400 and Rp 6 billion in cash; and gold — as part of the court’s efforts to return the $12 million to state coffers.

KPK chairman Agus Rahardjo said the antigraft body was ready to assist the ministry in resolving Teddy and Irwan’s cases, especially in singling out non-military offenders.

Agus added that the KPK was familiar with Teddy’s case because it previously supervised the case and attended the months-long trial to collect information.

“Earlier the KPK reminded the ministry that there was still another case, other than Teddy’s. That’s part of our move to supervise the case. The KPK is ready to help investigate the flow of the $12 million,” he said.

Meanwhile, TNI spokesperson Brig. Gen. Wuryanto said the military would show no tolerance if other members were netted in cases in the future.

“We are ready to conduct cleansing to make the TNI a professional institution. The life sentence for Teddy means the TNI did not intervene in the legal process and did not protect its member,” Wuryanto said.

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