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Money laundering, graft rampant at Finance Ministry
Speaking to reporters in Jakarta, Pahala said the KPK had flagged 134 tax officials with stakes in 280 companies in varying sectors, including tax-consulting services.
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Tax official Rafael Alun Trisambodo (right) arrives at the Corruption Eradication Commission (KPK) in Jakarta, March 1, 2023 to attend a questioning on his suspicious wealth. In his latest official report he filed with the KPK, Rafael’s net worth was Rp 56.1 billion (US$3.7 million). (Antara/Aprillio Akbar)
T
he current crackdown on corrupt and dishonest tax and excise officials within the Finance Ministry’s ranks has exposed a raft of illicit methods thought to be used for self-enrichment, from abusing administrative loopholes to owning shares that present clear conflicts of interest.
For one, the Corruption Eradication Commission (KPK) plans to submit findings that point to potential money-laundering offenses by hundreds of taxmen, KPK deputy for graft prevention Pahala Nainggolan said on Thursday.
Speaking to reporters in Jakarta, Pahala said the KPK had flagged 134 tax officials with stakes in 280 companies in varying sectors, including tax-consulting services. He said investigators were looking at firms that pose a greater risk of corruption, such as those offering ways for taxmen to receive bribes while avoiding detection.
“If they [receive money] through a bank transfer, it will show up in their wealth reports. But if they do it through a company, it would be [difficult to trace] because the KPK has no jurisdiction over the company’s finances,” he told reporters in Jakarta.
Part of the problem, he argued, is that prevailing laws and regulations, such as Government Regulation No. 94/2021 on income taxes, do not outright ban civil servants from owning stakes in companies, making them particularly prone to conflicts of interest.
Pahala also said that most of the 134 staff flagged did not include their ownership of companies in their annual wealth reports, while some have these stakes listed under the names of spouses or other members of their families.
He said the KPK would hand over the results of the probe to the Finance Ministry’s Inspectorate General on Friday.
