Collective graft case being probed in Lampung

Oyos Saroso, Bandarlampung

The Bandarlampung District Court opened the trial here on Monday of three councillors allegedly involved in a corruption scam, while prosecutors said all the 45 local council members could be charged in the same case.

Earlier last month, a district court in the West Sumatra capital of Padang jailed almost all the 55 provincial council members for corruption.

Similar collective graft scandals have also hit Payakumbuh regency in West Sumatra and the West Java cities of Cirebon and Garut.

Monday's trial of Palgunadi, Gusti Rahmat Kartolo and Muchzan Zein was marred by a protest by dozens of anticorruption activists outside the Bandarlampung court, who demanded severe sentences for them.

A team of prosecutors led by Andi Lazuardi told the court that Palgunadi, chairman of the Bandarlampung council's budget committee, his deputy Kartolo and secretary Muchzan were found guilty in the case involving Rp 4.1 billion (US$431,578).

The defendants were charged with embezzling Rp 2.8 billion from the city's 2001-2003 budget, Lazuardi said.

He said the three senior councillors had collectively made use of a loophole in Government Regulation No. 110/2000 on financial status in legislative councils to enrich themselves.

The defendants were accused of violating Article 2 of Law No. 31/1999 or Law No. 20/2001.

Witnesses from private insurance firm PT Bumi Putra told prosecutors that the Bandarlampung council allocated Rp 1.76 billion in health allowances from the 2001 and 2002 budgets for its 45 members.

The money was channeled through the insurance company, with the councillors receiving Rp 20 million each, according to them.

Separately, Bandarlampung Prosecutor's Office head Herman Rachmat said on Monday the entire council members could be named suspects in the collective graft scam, pending investigations.

"From data and statements gathered from witnesses, all the council members could be declared suspects," he said.

Rachmat said that apart from the three defendants, his office was completing the dossiers of three other suspects charged with involvement in the misuse of Rp 1.8 billion from the 2001 budget.

The latest three were 2001 budget committee chairman Muhammad Effendi, his deputy Indra Karyadi and secretary Sobari Agus.

"The investigation is focused on the legal grounds used by the budget committee to set out the allocation of funds (for their welfare), including the problematic health insurance," Rachmat said.

Jhony Manurung, the intelligence section at Rachmat's office, said that nine other councillors would also be questioned in the same case after the Lampung governor gave the prosecutors permission to summon them.

As the trial, presided over by Gani Parlaungan, proceeded on Monday, dozens of anticorruption activists staged a protest outside the court to demand that the three councillors be given severe sentences.

The defendants should be sentenced to death if deemed necessary, in order to help stop rampant corruption in the legislature, said the protesters.