KPK begins prosecution of first case
Muninggar Sri Saraswati, Jakarta
The Corruption Eradication Commission (KPK) announced on Thursday it had began the prosecution of an corruption case worth over Rp 10 billion, the first since its establishment six months ago.
"We have named as a suspect, Harun Letlet, a finance division head of the directorate general for marine transportation of the Ministry of Communications," said KPK deputy chairman Tumpak Hatorangan Panggabean.
According to Panggabean, Harun was involved in the mark up of the price of a piece of land the Ministry of Communications bought to develop a seaport in Tual, Maluku, resulting in state losses worth over Rp 10 billion (US$1.10 million).
"We have questioned many witnesses and reviewed documents involving the case," he said.
Panggabean, however, did not reveal when the trial would begin and where. Despite the accusation, Harus has yet to be detained.
He also remains at his post although the law on the KPK stipulates public officials should be suspended from their jobs once the commission declared them suspects in corruption cases.
The case is set to be a test case for KPK in the yet-to-be established ad hoc corruption court, which is expected to commence later this year.
The commission is currently investigating several corruption cases, including the alleged mark up of the purchase of a Russian Mi-2 helicopter by the Aceh administration.
In the meantime, the KPK is planing to investigate a bribery case involving a former foreign consultant employed by Monsanto Co., one of the world's leading developers of genetically modified seeds.
The consultant allegedly bribed an unidentified Indonesian official to have Monsanto's business in the country approved.
On Thursday, Monsanto lawyers acknowledged the summons of the KPK in connection with the alleged US$50,000 bribe.
"Both parties share the opinion that the bribery case involving the company and a state official must be solved, regardless of whom is involved. They also promise to cooperate with us in investigating the case," Erry Riyana Hardjapamekas said.
Monsanto has promised to cooperate in the KPK's investigation of the case after a similar case in the U.S. is settled.
The case started when the U.S.-based agrochemical company disclosed in November 2002 that an internal audit and review by its management had uncovered compliance irregularities in Indonesia.
The U.S. Department of Justice and the Securities and Exchange Commission decided in March to widen the investigation on whether a consultant hired by Monsanto had made a payment to an public official.
Under the U.S. Foreign Corrupt Practices Act, which prohibits bribing of foreign officials, a company can face a maximum fine of US$2 million per violation.
Monsanto introduced biotech cotton in the country in 2001 but closed down its sales operations in 2003 amid complaints over yields and pricing. Now its business is confined to herbicide and conventional corn seed sales.
Dubbed a "super agency", many observers hope the KPK will be able to reduce the level of corruption in the country, which is regarded as one of the highest in the world.