Indonesian Political, Business & Finance News

AGO's move to drop probe against top firms queried

| Source: JP

AGO's move to drop probe against top firms queried

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

The decision by the Attorney General's Office (AGO) to drop
investigations into an alleged lending scandal involving two
companies linked to leaders at the highest level of government,
may backfire against the institution, which is still struggling
to improve its public image over poor performance in its handling
of graft cases.

Lucky Djani, the deputy coordinator of Indonesia Corruption
Watch (ICW), said that prosecutors must quickly explain to the
public, the legal reasons behind its controversial decision.

"The public is very sensitive about the case as it is an
alleged graft case involving (firms linked to) state officials.
Prosecutors need to be sensitive, too," he told The Jakarta Post
said on Saturday.

The public has grown "sick" of prosecutors' just dropping such
cases without explanation, especially graft cases involving high-
profile businesspeople or state officials, he added.

The AGO has long been deemed corrupt by average citizens.
There were high hopes among the people, however, for swift
reforms at the AGO after President Susilo Bambang Yudhoyono named
in October Abdul Rahman Saleh, a former judge with a relatively
clean reputation, as the new Attorney General.

Rudy Satryo, a criminal law expert of the University of
Indonesia School of Law, warned that the controversial decision
to drop the graft investigation into firms linked to high-profile
figures would further undermine the image of the AGO.

"It's a wrong move. Why can't they be transparent?" he
queried, reiterating that prosecutors must now convince the
public that its decision was above board.

Lucky said the AGO offered no reasons for the decision, except
to say that prosecutors "found no potential losses to the state
in relation to the loans given to these companies based on a
report from the Supreme Audit Agency (BPK)."

On Friday, the AGO announced that it decided to halt its graft
investigation into cement company PT Semen Bosowa Maros and
telecommunications firm PT Bakrie Telecom, which are owned by a
nephew of Vice President Jusuf Kalla and Coordinating Minister
for the Economy Aburizal Bakrie, respectively.

The AGO had previously planned to investigate up to 28
companies including those two over alleged loan irregularities by
state-owned Bank Mandiri involving more than Rp 12 trillion
(around US$1.28 billion) in loans. Prosecutors, at present, are
only focusing their investigation on four companies. The AGO has
detained top officials of two companies, and also former top
officials of the giant Bank Mandiri as suspects in the case.

View JSON | Print