KPK can open bank accounts without BI consent

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.