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ormer Democratic Party treasurer and graft convict Muhammad Nazaruddin is in the spotlight again, this time for allegedly running his business empire from inside his prison cell.

Media reports have said that Nazaruddin set up 28 new companies in various fields last year while serving part of his seven-year prison term in Cipinang Penitentiary in East Jakarta.

Nazaruddin was sentenced to prison in 2012 for masterminding the bribery scheme surrounding the construction of the athletes' village for the Southeast Asian (SEA) Games in Palembang, South Sumatra.

Tempo weekly reported that not only had Nazaruddin set up the new companies, he also ran them from his prison cell by conducting meetings and giving instructions to his subordinates, including making backhanded deals with members of the House of Representatives and government officials.

It would be difficult, however, for the Corruption Eradication Commission (KPK) to probe Nazaruddin's alleged post-conviction graft practices because he was no longer a public official, KPK spokesman Johan Budi said on Tuesday.

According to the 2001 Corruption Law, the KPK is only permitted to investigate allegations of corruption by public officials, before it can move to private parties suspected of having links with those officials.

Johan said it would be a stretch for the KPK to probe Nazaruddin's current business activities.

'How can anyone prove that he runs his businesses from behind bars?' Johan asked. 'It is also important to remember that running a business from behind bars in itself is not a crime. It would be corruption, though, if he was proved to be bribing public officials.'

Johan said the only action the KPK could take would be to continue its probe into Nazaruddin's alleged money laundering by monitoring his assets.

So far, the antigraft body has confiscated around Rp 400 billion (US$40 million) worth of his assets, including his Rp 300 billion worth of shares in national flag carrier Garuda Indonesia and Rp 90 billion worth of shares in a Riau oil palm plantation.

Johan also said that it was beyond the KPK's authority to prevent graft convicts from conducting corrupt practices from behind bars.

'It is the Law and Human Rights Ministry's duty to manage and monitor graft convicts,' he said.

Contacted separately, Deputy Law and Human Rights Minister Denny Indrayana said that Nazaruddin had been moved from the Cipinang Penitentiary to Sukamiskin prison in Bandung, West Java, last month.

'Insya Allah [God willing], [the conditions] in Sukamiskin Penitentiary will be better and more sterile,' he told The Jakarta Post.

Denny also confirmed that severe punishments would be handed down to anyone found assisting Nazaruddin in his business dealings.

'If we discover any misconduct, everyone involved will be severely punished,' he said.

Denny denied, however, that the decision to move Nazaruddin from Jakarta to Bandung was in order to stop him running the businesses.

'The Sukamiskin prison is specifically designed to detain graft convicts,' he said.

Nazaruddin's lawyer, Rufinus Hutauruk, meanwhile, said he had no knowledge about Nazaruddin's recent activities in prison.

'I don't want to get involved with these allegations. This is beyond my authority; I was only asked to handle the athletes' village graft case,' Rufinus told the Post.

Rufinus added that he had no knowledge about Nazaruddin's assets.

Nazaruddin is said to be running his new businesses the way he controlled his old holding company, the Permai Group, which was allegedly used as a proxy to win government projects that were later subcontracted out to larger companies in exchange for fees.

One of the many government projects that Nazaruddin has managed to secure using his new companies is the procurement of medical equipment at the Dokter Murjani Regional Hospital in Sampit, Central Kalimantan.

The tender for the Rp 19 billion project was won by PT Sanjico Abadi, allegedly established by Nazaruddin under a different name during his stint in the Cipinang Penitentiary in 2012.