Tue, 28 Sep 2004

Laksamana at center of graft allegations

Abdul Khalik and Rendi A. Witular, The Jakarta Post, Jakarta

The Attorney General's Office is looking into corruption allegations against State Minister for State Enterprises Laksamana Sukardi, the attorney general said.

"We just received the reports on Friday and we are examining them now. We can't ban someone from making overseas trips without reading the reports first," said Attorney General M.A. Rachman

Representatives of the Association of University of Indonesia Alumni, the Bandung Institute of Technology Alumni, the Trisakti University Alumni and the Civil Society Professionals submitted to the Attorney General's Office last Friday reports alleging that Laksamana was involved in corruption in several divestment programs over the past several years.

The reports included the controversial divestment of telecommunications firm Indosat in 2002, the sale of Pertamina tankers in 2004 and several other divestment programs.

Deputy Attorney General for Intelligence Basrief Arief said his office had formed a team to study the reports.

"The reports include the divestment of Indosat several years ago. We have to study the documents first. We have formed a team for that. After that we will make a decision," said Basrief.

He also said that earlier complaints filed with the Attorney General's Office against other high-ranking officials would also be examined. They include complaints against Minister for Trade and Industry Rini MS Soewandi and the former chairman of the now defunct Indonesian Bank Restructuring Agency, Syafruddin Temenggung.

In a bid to raise cash to cover the budget deficit, the government has sold its shares in several firms, including Bank Central Asia and Indosat.

The sale of the government stake in Indosat to Singapore Technologies Telemedia was heavily criticized, partly due to a lack of transparency and alleged irregularities in the sale.

A number of legislators said at the time they would set up a special team to investigate the transaction. However, no action was taken.

Laksamana dismissed the corruption allegations on Monday, saying all of the sales of state shares had been conducted in accordance with the Constitution and all current laws.

"We have laws that regulate the process. I just execute the programs. The government also has working committees comprising several ministers. We also have to get legislators' approval. So, it's not Laksamana doing the privatization," he said.

He added that if any divestment of a state company had the potential to cause losses to the state, it would never have proceeded because the House of Representatives would not have approved the sale.