Indonesian Political, Business & Finance News

Police have no right 'to probe corruption'

| Source: JP

Police have no right 'to probe corruption'

JAKARTA (JP): Attorney General Singgih said yesterday that all
corruption cases should be investigated by his office and not the
police.

An agreement cosigned by the Supreme Court, Ministry of
Justice, Attorney General's Office and National Police outlines
the ruling, Singgih told reporters during a year-end media
conference.

He was referring to the Jakarta Police investigation of three
former directors of Bank Indonesia (BI) who have been formally
charged with corruption.

"The case regarding the three former BI directors -- whether
it's corruption or other crimes -- is still unclear because we
haven't received official notification from the police about the
investigation," Singgih was quoted by Antara as saying.

According to the agreement, police should notify the Attorney
General's Office, he said, adding that his office would later
determine the nature of the crimes.

Singgih cited as an example the matter of state-owned social
security insurance company, PT Jamsostek, which is being
investigated by the Development and Finance Control Board.

If there is an indication of corruption, the case will be
handled by his office and if it is about common crime, it will be
investigated by the police, he said.

Singgih reiterated that his office has the authority to decide
whether a case should be prosecuted.

"In this particular case, the Attorney General has the right
to stop the investigation for the sake of public interest," he
said.

Police were not available for comment yesterday evening.

Earlier in the day, a senior police officer said the three
bank executives had been questioned about their alleged
involvement in granting loans to five ailing private banks which
were rocked recently by scams worth Rp 1.95 trillion (US$375
million).

But the head of economic affairs for National Police Detective
Corps, Col. Made Mangku Pastika, said the questioning did not
necessarily mean that the men had committed corruption or caused
huge financial losses to the country or the central bank.

"They were not questioned about alleged acts of corruption at
the central bank, but about their possible involvement in
improper loans granted to the five troubled private banks."

Made said the three suspects -- Paul Soetopo Tjokronegoro,
Hendrobudiyanto and Heru Soepraptomo -- were investigated
following a probe of the five banks.

The banks have been identified as Bank Arta Prima, Bank
Perniagaan, Bank Asta, Bank Dwipa and Bank Citra, all based in
Jakarta, he said.

Allegations of fraud were recently leveled against employees
of the banks.

Thirty-five suspects, including at least four former BI
executives, have been arrested for their alleged involvement in
fraud which involved fake loans and the issuing of commercial
papers and deposits.

Made said the investigation would prove whether the three, who
have already been charged with corruption, were ever involved in
manipulating procedures for granting BI loans to the five banks.

"But it's too early to say whether the three men have used
their positions at the central bank to help the swindlers derive
loans from the bank."

Made said about Rp 1.5 trillion of the estimated losses of Rp
1.95 trillion were mostly in the form of loans given to the banks
and that the remaining was derived from the public.

"But, once again, it doesn't necessarily means that the three
suspects were responsible for the loss of Rp 1.5 trillion at BI."
(cst)

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