KPK begins prosecution of first case<\/p>\n
Muninggar Sri Saraswati, Jakarta<\/p>\n
The Corruption Eradication Commission (KPK) announced on Thursday
\nit had began the prosecution of an corruption case worth over Rp
\n10 billion, the first since its establishment six months ago.<\/p>\n
"We have named as a suspect, Harun Letlet, a finance division
\nhead of the directorate general for marine transportation of the
\nMinistry of Communications," said KPK deputy chairman Tumpak
\nHatorangan Panggabean.<\/p>\n
According to Panggabean, Harun was involved in the mark up of
\nthe price of a piece of land the Ministry of Communications
\nbought to develop a seaport in Tual, Maluku, resulting in state
\nlosses worth over Rp 10 billion (US$1.10 million).<\/p>\n
"We have questioned many witnesses and reviewed documents
\ninvolving the case," he said.<\/p>\n
Panggabean, however, did not reveal when the trial would begin
\nand where. Despite the accusation, Harus has yet to be detained.<\/p>\n
He also remains at his post although the law on the KPK
\nstipulates public officials should be suspended from their jobs
\nonce the commission declared them suspects in corruption cases.<\/p>\n
The case is set to be a test case for KPK in the yet-to-be
\nestablished ad hoc corruption court, which is expected to
\ncommence later this year.<\/p>\n
The commission is currently investigating several corruption
\ncases, including the alleged mark up of the purchase of a Russian
\nMi-2 helicopter by the Aceh administration.<\/p>\n
In the meantime, the KPK is planing to investigate a bribery
\ncase involving a former foreign consultant employed by Monsanto
\nCo., one of the world's leading developers of genetically
\nmodified seeds.<\/p>\n
The consultant allegedly bribed an unidentified Indonesian
\nofficial to have Monsanto's business in the country approved.<\/p>\n
On Thursday, Monsanto lawyers acknowledged the summons of the
\nKPK in connection with the alleged US$50,000 bribe.<\/p>\n
"Both parties share the opinion that the bribery case
\ninvolving the company and a state official must be solved,
\nregardless of whom is involved. They also promise to cooperate
\nwith us in investigating the case," Erry Riyana Hardjapamekas
\nsaid.<\/p>\n
Monsanto has promised to cooperate in the KPK's investigation
\nof the case after a similar case in the U.S. is settled.<\/p>\n
The case started when the U.S.-based agrochemical company
\ndisclosed in November 2002 that an internal audit and review by
\nits management had uncovered compliance irregularities in
\nIndonesia.<\/p>\n
The U.S. Department of Justice and the Securities and Exchange
\nCommission decided in March to widen the investigation on whether
\na consultant hired by Monsanto had made a payment to an public
\nofficial.<\/p>\n
Under the U.S. Foreign Corrupt Practices Act, which prohibits
\nbribing of foreign officials, a company can face a maximum fine
\nof US$2 million per violation.<\/p>\n
Monsanto introduced biotech cotton in the country in 2001 but
\nclosed down its sales operations in 2003 amid complaints over
\nyields and pricing. Now its business is confined to herbicide and
\nconventional corn seed sales.<\/p>\n
Dubbed a "super agency", many observers hope the KPK will be
\nable to reduce the level of corruption in the country, which is
\nregarded as one of the highest in the world.<\/p>",
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