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"Although criminal charges against him are no longer applicable due to his death, the financial obligation to the state remains," the minister added.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