Fight white collar crimes: Soeharto

JAKARTA (JP): President Soeharto has ordered government prosecutors to go after white collar criminals because they are creating huge losses for taxpayers and the government.

"In recent years, in the wake of economic development, we have been seeing an increase in the number of economic crimes and violations committed using more and more sophisticated methods," Soeharto said in keynote address launching the working conference of the Attorney General's office.

"These crimes require serious attention from the state apparatus and law enforcement agencies," he said.

"The majority of economic violations and crimes occur in the fields of finance, banking and taxation, causing not a small drain on development funds which we have painstakingly collected."

The president said that this activity would have to stop because it could seriously undermine the current government effort to make Indonesia financially independent from foreign assistance in developing the nation.

The public has given their full support of this endeavor, as shown by their increasing awareness in paying their taxes, he added.

"Economic violations and crimes are not only hampering development efforts, they also undermine the people's confidence on these efforts. The public attorneys must pay special attention to this issue."

His appeal to give priority to white collar criminals came barely a month after three businessmen in Surabaya, East Java, were acquitted of tax evasion charges.

Soeharto, who rarely commented on court verdicts, expressed his concern about the impact the acquittal would have on the government's drive to prosecute tax evaders.

A number of judges and public attorneys are now under investigation after allegations that they received bribes from the defendants. However, law experts have said that the prosecutors do not have a strong enough case to obtain guilty verdicts.

Now, the Attorney General's office is under pressure to obtain guilty verdicts against people involved in the Rp 1.3 trillion ($620 million) scandal at the government-owned Bank Pembangunan Indonesia.

The chief suspect is Eddy Tansil, owner of the Golden Key Group, who reportedly obtained loans and cashed in on them in violation of normal banking practices. The investigators believe he had insiders' help.

Professionalism

In his speech, Soeharto urged public attorneys to sharpen their professional skills. "The ability to present evidence of the crime committed is a decisive factor when the judge makes a decision."

Singgih, in his speech to the meeting attended by about 300 senior public attorneys, also stressed on the need to improve their professionalism so that the public can see that the law is maintained and justice is upheld.

Later, he briefed reporters about the progress in the Bapindo investigation which his office is now conducting, stressing that only six suspects -- Tansil and five Bapindo executives -- have been admitted so far.

He confirmed that the investigators are questioning Sudomo, the chairman of the Supreme Advisory Council, but only in his capacity as a witness.

Sudomo has admitted writing a letter of reference in support of Tansil's application for the loans from Bapindo. However, he denied any wrongdoing, stressing that the bank's executives had the last word in deciding whether or not to extend the credits based on the applicant's creditworthiness. (02)

Law -- Page 2