KPK can open bank accounts without BI consent

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

The Supreme Court has upheld a law allowing the Corruption Eradication Commission (KPK) to examine the bank accounts of people being investigated for graft without consent from the central bank governor.

Responding to Bank Indonesia's request for a judicial review, the Supreme Court issued the ruling on Dec. 2. It says Law No. 30/2002 on the KPK gives the commission access to bank accounts in investigations despite Law No. 31/1999 on corruption eradication and Law No. 10/1998 on banking, which guarantee confidentiality.

The two earlier laws spell out the special procedures law enforcers must follow when looking into bank accounts belonging to suspects; one of which is seeking approval from the Bank Indonesia governor beforehand.

Chief Justice Bagir Manan said in the ruling signed on Dec. 2 that Article 12 of the KPK law was specific legislation, therefore the commission's authority to examine bank accounts of suspects in investigations and prosecutions was acceptable.

Article 12 of the KPK law says the body has the authority to obtain information from banks or other institutions about the financial status of those under investigation.

The same article also gives the KPK the power to order banks or other financial institutions to freeze the accounts of suspects, defendants or other parties involved in suspected graft or fraud.

KPK deputy chairman Erry Riyana Hardjapamekas welcomed the ruling, saying that it would expedite the investigations and prosecutions conducted by the commission.

"Although KPK has been dubbed a superbody, we have not been able to examine the bank accounts of suspected criminals so far," he said over the weekend.

The central bank had contested the KPK law and insisted on the supremacy of the banking law, which restricts access to bank accounts to police, prosecutors and judges only.

The BI does not consider the KPK, which was set up after the issuance of the banking law, one of the three law enforcers.

"We believe the central bank must adopt prudential banking principles, including by protecting bank confidentiality," Erry said.

During a meeting with the House of Representatives last month, KPK chairman Taufiqurrachman Ruki raised the issue, saying bank confidentiality had hampered the commission's duties.

Taufiqurrachman had asked the House to amend anticorruption laws, including bank secrecy laws, saying the bank confidentiality law was among the most formidable stumbling blocks to swift prosecution of corruption cases.

He called for legislators to endorse more regulations to boost the commission's powers.