Govt faces problems proving bribery in Manulife

Govt faces problems proving bribery in Manulife

A team investigating whether three Indonesian judges were bribed to declare a foreign firm bankrupt has had difficulties finding witnesses, the minister of justice and human rights said Wednesday.

Yusril Ihza Mahendra said the team had questioned the commercial court judges but several key witnesses had refused to testify, the state Antara news agency reported.

"Even those people who were screaming during the hearing and said that the judges had been bribed, do not want to become witnesses," Yusril said.

The judges on June 13 declared Manulife Indonesia -- a subsidiary of Canadian insurance giant Manulife Financial -- bankrupt. An official of the parent company said at the time he suspected the court had been bribed.

The ruling was the latest round in Manulife's bitter legal battle with its former local partner the Dharmala Group, itself declared bankrupt in June 2000.

The decision against Manulife Indonesia -- the latest in a series of controversial court rulings -- unnerved foreign investors and sparked strong protests from Canada.

Yusril said his ministry's inspector general is due to hand him the report of the team later on Wednesday and he might make it public on Thursday.

When announcing the team's formation, Yusril said the focus of the probe would be "suspicions of bribery and collusion."

Any evidence would be handed to prosecutors for possible criminal charges, he said. -- AFP