Indonesian Political, Business & Finance News

KPK arrests senior 'RRI' official

| Source: JP

KPK arrests senior 'RRI' official

The Jakarta Post, Jakarta

The Corruption Eradication Commission (KPK) arrested RRI state
radio station finance and administration director Suratno on
Tuesday in connection with a Rp 20 billion (US$2.1 million) graft
case.

Suratno's lawyer, Bambang Suryowidodo, confirmed the arrest,
saying his client had been declared a suspect several days ago.

Suratno is being detained at Jakarta Police Headquarters.

Antara reported that KPK investigators had named Suratno a
suspect in a case centering around the inflated cost of radio
equipment used to cover last year's general election.

Based on the KPK investigation, Suratno embezzled almost half
of the Rp 45 billion in procurement funds.

According to Indonesian Corruption Watch (ICW) data, the radio
station sought approval from the House of Representatives to
increase the budget for the procurement of radio equipment.

After House members approved the request, RRI received Rp 45
billion disbursed in two stages by the government.

The government first disbursed Rp 27.7 billion and the funds
were used to buy broadcasting equipment to be used in eight
areas, including Merauke, Toli-toli, Bengkulu, Sintang, Lampung
and Makassar.

ICW calculated that RRI had embezzled around 74 percent of the
funds and later took a bigger portion when the second payment was
disbursed. Based on ICW data, RRI used only Rp 6.1 billion to buy
and install the broadcasting equipment.

Suratno also allegedly received Rp 2 billion in "gratitude"
tips from Faharani, who represented a private firm supplying and
installing the radio equipment for RRI.

Bambang, however, denied an earlier statement from Faharani
that Suratno had asked for a kickback from the private firm.

Suratno will be charged under Law No. 31/1999 and Law No.
20/2001 on graft. Faharani, who has been detained since Aug. 1,
will also be charged under the same laws.

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