Tue, 09 Aug 2005

Poll commission chief charged with corruption

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

General Elections Commission (KPU) chairman Nazaruddin Sjamsuddin sat in the dock on Monday as prosecutors of the Corruption Eradication Commission (KPK) indicted him for graft worth over Rp 14 billion (US$1.44 million).

Wearing a black jacket and blue shirt, Nazaruddin attended his first court hearing quietly. His wife Nurida and two KPU members Chusnul Mar'iyah and Daan Dimara were among those who witnessed the opening of the trial at the Anticorruption Court.

Under the indictment, the defendant was accused of being involved in approving an agreement with insurance firm PT Asuransi Umum Bumi Putera Muda 1967 to insure all KPU members and staff during the 2004 general elections.

Nazaruddin, who has been in detention since May 20, endorsed the insurance agreement days after he met a director of the company in June. Prosecutors said the approval was made without following the procedures stipulated in Presidential Decree No. 80/2003 on material procurements for government offices.

KPU treasurer Hamdani Amin later ordered one of his subordinates to produce fake documents to make it appear as though the policy deal with the insurance firm followed legitimate procedures, according to the prosecutors.

They said Heru Hermawan, Hamdani's staffer, rejected the order. But Hamdani insisted, telling him, "It's an order from the (KPU) chairman."

Later in July, Hamdani contacted Mu'alim Muslich, the insurance company director, and asked him to hand over 34 percent of the total transaction as a kickback to the KPU.

Nazaruddin gave his approval for the KPU to pay Rp 14.8 billion to the insurance company on July 8. Five days later, the insurance company gave US$566,795 back to Hamdani. He told Hamdani to keep the money in the latter's safe in his office.

The defendant later allowed Hamdani to disburse the kickback money to KPU members and staff as well as other parties, including officials from the State Audit Body (BPK), a legislator, and persons from the Ministry of Finance's Budgetary Directorate.

Nazaruddin received $75,000, KPU deputy chairman Ramlan Surbakti $55,000, and other KPU members -- current justice minister Hamid Awaluddin, Rusadi Kantaprawira, Daan Dimara, Chusnul Mar'iyah, Mulyana W. Kusumah, Valina Singka Subekti and Anas Urbaningrum -- received $40,000 each.

KPU secretary general Safder Yusacc and deputy secretary general Susongko Sahardjo also got $15,000 each, while a staffer, Syaukani, was only given $10,000.

The money was used to finance their trips abroad.

"The defendant's acts have enriched himself, KPU members and other officials as well as the insurance company," chief prosecutor Wisnu Baroto told the hearing.

Nazaruddin is charged with violating Article 2 (1) of Law No. 31/1999 on anticorruption, which carries a penalty of four years to 20 years imprisonment as well as a fine of Rp 100 million to Rp 1 billion.

The defendant has denied any wrongdoing. On Monday, his team of lawyers asked the court to release him from detention.

Prosecutors also revealed that the KPU also obtained kickbacks from its other partner firms that provided election materials during the general elections, including PT Astra International (some Rp 2.3 billion), PT Indologis (Rp 500 million) and Metro Pos (Rp 230 million) as well as PT Leces ($511,000), PT Pura ($170,000) and PT Surabaya Agung ($155,000).

Nazaruddin is the fourth KPU official named as a suspect in the high-profile corruption scandal, which was unveiled after KPU member Mulyana W. Kusumah, who is a trained criminologist, was caught red-handed trying to bribe a Supreme Audit Agency official.

Mulyana, Susongko and Hamdani Amin are also on trial in separate hearings at the same court. However, the KPK was yet to announce prosecutions of other KPU members and employees over the same case.