Indonesian Political, Business & Finance News

Collective graft case being probed in Lampung

| Source: JP

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.

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