Govt to pursue the assets of dead fraud convict

Govt to pursue the assets of dead fraud convict

Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

A wanted Indonesian banking and business magnate convicted of
corruption, Hendra Rahardja, died on Sunday night in Australia,
but the government said on Monday that it would still pursue his
assets to pay his debts to the country.

Minister of Justice and Human Rights Yusril Ihza Mahendra said
that the Australian government had offered Jakarta some US$120
million of Hendra's assets in that country.

"We will have to determine how many of those are private or
his company's property (in Australia) for the state to take
over," Yusril said after attending a Cabinet meeting.

"Although criminal charges against him are no longer
applicable due to his death, the financial obligation to the
state remains," the minister added.

The minister confirmed that the convicted tycoon died on
Sunday night in Australia.

Hendra, who died of kidney cancer, was sentenced to life in
prison in absentia last March for corruption involving Rp 1.95
trillion (US$216.7million) of taxpayer money distributed to two
of his banks under the Bank Indonesia Liquidity Assistance
program during the late 90s economic crisis.

The tycoon fled the country in 1997 and the government has
sought his extradition from Australia since he was arrested in
Sidney in 1999.

Jakarta's efforts to bring Hendra back had yet to bear fruit
when the notorious businessman was diagnosed with kidney cancer
and given six months to live.

"The Australian government offered to settle the $120 million
of his assets there, and for that we need to have a liquidation
team sort out the assets," Yusril said.

Hendra was charged with corruption after the collapse of his
two banks, Bank Harapan Sentosa and Bank Guna International, in
1997 even after the state provided the emergency funds to bail
out the failing banks.

Regarding the accusations from Hendra's lawyer that some of
his assets had been taken over and sold by the government, Yusril
said that such questions should be addressed to the Indonesian
Bank Restructuring Agency (IBRA).

"The settlement of the debts comes under the jurisdiction of
IBRA," the minister said.

Hendra's lawyer O.C. Kaligis claimed that government had sold
some of his client's assets at market price, but that the process
was not transparent.

Hendra was one of several wealthy bank owners that fled the
country to avoid repaying their loans from the state.

Another tycoon Sjamsul Nursalim is currently living in
Singapore. He also has cited health reasons for not returning to
Indonesia where the courts want to hold him responsible for his
alleged corruption, also connected to the BLBI case.