Thu, 26 Dec 2002

Don't ever let crime pay

The government's decision to drop criminal charges against big conglomerates who robbed the nation of trillions of rupiah, on the grounds that they have settled their debts to the state, albeit partially, is a major blow to justice and to democracy.

The decision, made at a Cabinet meeting led by President Megawati Soekarnoputri on Monday, has apparently settled a long- running dilemma facing the government: Should it go after the loot (or some of it anyway) or should it prosecute the big-time white collar thieves? The government has settled for the first option, and the thieves' crimes are now about to be forgiven.

It never occurred to the leaders of government that they could, and should, pursue the dual goals of retrieving the money and of punishing the thieves.

The government points to agreements that it had signed with the conglomerates in 1999 as the basis of its decision, an agreement that had been endorsed by the People's Consultative Assembly (MPR). The government must now abide by its part of the bargain, and to insist on pursuing criminal charges would negate its contractual obligations, so it argues.

Contracts aside, the decision to release and discharge the conglomerates, who played a pivotal role in bringing Indonesia to its present state of near bankruptcy, sends the wrong message about the country's commitment to upholding law and justice.

Put in simple terms, the decision virtually sends the message that stealing is fine.

Don't ever consider stealing your neighbor's hens though, or you will be beaten up by the entire neighborhood.

Instead, steal in a big way, the way conglomerates did it in the 1990s. If you're caught, give part of the loot back and you're forgiven.

The worst that can happen to you is that you'll get some bad publicity. But with all the money that you stole, you can buy yourself good publicity. You can even set up newspapers or TV stations to do the job for you. And you can hire all those loud- mouthed and expensive lawyers who will lead your publicity offensive by reciting your basic human rights.

Crime, in a big way, pays handsomely in Indonesia.

Needless to say, this creates a moral hazard. The conglomerates will do it again: They got away once, they are sure to get away again next time.

These conglomerates meanwhile have even repossessed some of their corporate assets that were seized by the government in 1998 to cover their mountains of unpaid debts to the state. The way they regained control over these assets -- at bargain prices, free of debt, and using money borrowed from state banks -- is also indicative of the good old-fashioned practices of corruption, collusion and nepotism. These are the only ways such people know how to do business and to enrich themselves in the 1990s. Now they are back in charge of the country's economy, and out goes good corporate governance.

We are coming full circle, and are simply waiting for the next crisis.

The conglomerates not only brought about the 1998 financial crisis, they left behind huge debts which us taxpayers will have to shoulder for the next 20 years or so.

Letting them go free after all the pain and suffering they have caused the nation, and knowing that they can inflict more pain and suffering again, sounds immoral somehow.

While the state has already made its decision to drop criminal charges because of a 1999 contractual agreement, the people who will have to shoulder the burden of debt are not obliged by any contract to forgive the conglomerates.

Nor are the courts of law under any such obligation. It is the duty of the courts to ensure that justice is upheld and is seen to be upheld in this country.

Now that the government's position is clear, the people can, and must, take up the matter themselves. They should consider launching class action against the conglomerates for bankrupting the country, and against the government for its complicity in this affair.

We must never let crime, especially big crime, pay.