Sat, 18 Jan 2003

Corruption worse under Megawati, says ICW

Tiarma Siboro, The Jakarta Post, Jakarta

Corruption among state officials and politicians has worsened under President Megawati Soekarnoputri's leadership, Indonesian Corruption Watch (ICW) says.

ICW coordinator Teten Masduki also said that Megawati has no intention of pursuing corruption cases against cronies of the New Order despite the fact that widespread corruption led to the downfall of former dictator Soeharto in 1998, paving the way for the birth of a new era, the so-called Reform Era.

During Soeharto's authoritarian regime "only Soeharto's cronies were able to commit corruption", but the dawn of the reform era "has opened the door for all politicians at all levels to engage in corruption."

"The rampant corruption of the past was more centralized because of Soeharto's strong power, but the administration of Megawati has promoted corruption in the spirit of mutual cooperation," Teten said during a press conference here on Friday.

Teten said regional autonomy, which was introduced in January 2001, had helped spread corruption down to the local government level.

"I'm not saying that we would prefer to live under the New Order regime, but one thing is for sure, that corruption now takes place at all political and civil service levels," Teten said.

Teten cited several high profile scandals implicating members of the political elite, such as House of Representatives (DPR) Speaker Akbar Tandjung and Attorney General M.A. Rachman.

Akbar was sentenced to three years in jail for misappropriating state funds worth Rp 40 billion from the State Logistics Agency (Bulog) when he was minister/state secretary under the administration of former president B.J. Habibie, Soeharto's successor.

On Friday, the Jakarta High Court upheld Akbar's three-year jail term but he still remains free pending an appeal to the Supreme Court.

Rachman has been reported to the police by the Public Servants' Wealth Audit Commission (KPKPN) for a questionable wealth declaration but investigators have yet to summon him. Megawati, however, refused to dismiss Rahman from his post as Attorney General, arguing that firing him would not eliminate rampant corruption in the country.

In both cases, the pressure from politicians and legislators has been insignificant, raising speculation that they are defending their corrupt colleagues.

What was even more lamentable was the fact that the House and government had agreed to scrap the KPKPN after the commission insisted that all public officials declare their wealth.

The Attorney General's Office, according to ICW, put in a poor performance in 2002 as it failed to pursue more than 20 cases of corruption involving bankers and Bank Indonesia officials such as Sidharta SP. Soerjadi and Permadi Ganda Pradja of the now defunct Indover Asia Bank, causing the state to lose S$1 million.

Former minister of trade and industry Tanri Abeng, who was implicated in the Bank Bali scandal that cost the state Rp 546 billion, had not been prosecuted.

Some tycoons who were once cronies of the New Order such as Sjamsul Nursalim and Hendra Rahardja have chosen to live overseas to avoid prosecution while Megawati appeared reluctant to ask law enforcers to push ahead with their cases, Teten said.

Sjamsul and Hendra are just two of the tycoons who received Bank Indonesia liquidity support loans near the end of the New Order regime in 1998. Sjamsul, the owner of the now defunct Bank BDNI, received some Rp 6.9 trillion and $96.7 million, while Hendra received some Rp 80 billion as an injection of fresh funds into his now defunct Bank BHS.

Sjamsul and Hendra are currently living in Singapore and Australia respectively, and have so far failed to repay their debts.