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Chief justice: All provinces will have corruption courts by year end

Cempaka — Thu, 17 Feb 2011 07:37:00 +0000

The Jakarta Post, Jakarta | Thu, 02/17/2011

Corruption courts will be established in the capital cities of all 33 Indonesian provinces by the end of this year, Chief justice Harifin A Tumpa says.

Six judges specializing in corruption will be assigned to each province; two will work at the high court and four in its district court, Tumpa said in Bandalampung on Wednesday evening, as quoted by Antara.

The corruption courts would hold trial hearings and have their secretariats at existing district courts, he said.

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17 governors are graft suspects

Cempaka — Mon, 17 Jan 2011 10:06:00 +0000

The Jakarta Post, Jakarta | Mon, 01/17/2011

Seventeen of 33 governors in the country have been named graft suspects, Minister of Home Affairs Gamawan Fauzi revealed Monday.

The last case involved the Bengkulu governor, who was allegedly involved in corruption of land and building taxes worth Rp 23 billion (US$2.4 million).

“I signed the letter [to lay him off] two days ago. Hopefully in two or three days the President will issue a letter to lay him off,” he said in a meeting with regional representatives in Jakarta.

He said that two governors, Ismeth Abdullah of Riau province and Syamsul Arifin of North Sumatra, were still facing legal processes due to corruption charges, kompas.com reported.

“Today, 155 regional heads became suspects. But I think there will be more. Every week there is a new suspect. Three months in the office and they become suspects…,” he said.

Gamawan, a former West Sumatra governor, said to become a governor, one should spend a lot of money, between Rp 60 and 100 billion. However, the highest monthly salary of a governor, like the Jakarta governor, was only Rp 90 million, he added.

President wants state budget funds spent in result-oriented ways

Cempaka — Tue, 28 Dec 2010 11:44:00 +0000

Antara News, Tuesday, December 28, 2010

Jakarta (ANTARA News) – President Susilo Bambang Yudhoyono has asked ministers and the heads of all government agencies and state institutions to develop a result-oriented mindset in the spending of state budget funds.

In his address at a function to hand 2011 Budget-funded Project Porposal Lists (DIPA 2011) to cabinet ministers, state institution chiefs and provincial governors at the State Palace here on Tuesday, the President asked that the budget be used in more innovative, creative, and proactive manner.

“Let us change our mindset on the use of State Budget funds from input-based to output- and outcome-based. Stop using budget funds in the `business as usual` way,” the president said.

On the occasion the head of state asked state officials, ministers, and governors to observe efficiency on their service trips, meeting activities, operational as well as non-operational activities.

“Do not be wasteful. Conducting a meeting at a hotel outside Jakarta instead of at a government building while all participants are from Jakarta is wasteful,” the president said.

The head of state also asked that activities which were funded with foreign loans should be conducted as efficiently as possible.

The 2011 State Budget consists of state revenues and grants amounting to Rp1,104.9 trillion, up 11.3 percent from the previous year`s budget.

The allocation of the State Budget is Rp1,229.6 trillion which represents an increase of 9.2 percent from the previous year`s budget while the budget deficit was projected to amount to Rp124.66 trillion, or 1.8 percent of gross domestic product.

House to summon West Sumatra governor

Cempaka — Fri, 05 Nov 2010 23:54:00 +0000

Antara News, Saturday, November 6, 2010 00:40 WIB

Jakarta (ANTARA News) – The House of Representatives (DPR)`s Commission II on home affairs will summon West Sumatra Governor Irwan Prayitno for questioning about his absence during a natural disaster in his province.

“Commission II will propose the summoning of the West Sumatra governor and Home Affairs Minister Gamawan Fauzi,” Budiman Sujatmikio, a House Commission II members, said here on Friday.

Budiman who spoke during a discussion on “politicizing natural disasters” said that the governor and the minister had made contradictory statements regarding the governor`s absence.

He said the governor had claimed he had traveled to Germany to make a comparative study with permission from the central government while the home minister had said Jakarta had never given Irwan such permission.

“The House needs to use its power to obtain a clarification from them because it is impossible for both of their statements to be true,” he said.

West Sumatra Governor Irwan Prayitno left for Germany to be a speaker at an Indonesian Business Day held to promote investment, trade and tourism in the country.

The Prosperous Justice Party (PKS) in a press statement received by ANTARA on Wednesday said Irwan, a PKS cadre, had gone to Germany at the invitation of the Indonesian ambassador in Berlin.

West Sumatra was one of five provinces invited to the event. The other provinces were South Sumatra, East Java, West Nusa Tenggara and Papua.

The event in Muenchen was on Friday also attended by former president BJ Habibie, the Indonesian ministers of trade, industry and tourism as well as the head of the Capital Investment Coordinating Board (BKPM).

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Mayors share ideas on good governance

Cempaka — Fri, 29 Oct 2010 06:07:00 +0000

The Jakarta Post, Jakarta | Fri, 10/29/2010 11:05 AM

Anticorruption award-winning mayors shared ideas on key strategies to bring about good governance in their respective administrations throughout their ground-breaking tenure at the Bung Hatta Anticorruption Award 2010.

The awards were officially handed to Yogyakarta Mayor Herry Zudianto and Surakarta Mayor Joko Widodo on Thursday night in a ceremony attended by well-respected figures — including academics, activists and the media — concerned with corruption eradication.

The judges chose the two over 36 other candidates.

Herry, however, asked that his award to be bestowed to his administration, saying that the achievement would not have been possible without all the civil servants in his office.

“Good governance in Indonesia is like a rolling snowball: it can’t be stopped,” he said. “The paradigm shift can come from outside forces, or it can come from our willingness to change.”

Some of the novel systems that Herry has implemented in his administration include a one-stop licensing agency in which one office handles all administration procedures and the information and complaint service unit through which Yogyakarta residents voice their aspirations.

Herry added that he viewed leadership not as an avowal of social position, but as a sharing of responsibility with his colleagues.

“I consider myself more as the head of services in Yogyakarta rather than a mayor,” he said, adding that he nurtured his spirit of service during his previous profession as a batik entrepreneur.

Joko, who was a furniture entrepreneur before assuming office, said that he too implemented lessons learnt during his previous profession in his administration.

He stated that in his 21 years of dealing with foreign customers, he learnt the importance of quality, timeliness and finances, which he implemented by strengthening small-scale enterprises in Surakarta.

Joko is lauded for his success in the peaceful relocation of 5,817 street vendors and the establishment of 15 markets in his five years in office.

Clear-cut communication detailing the benefits of relocation overcame the vendors’ fears, he said.

“I apply the same method of communication with fellow politicians. I talk to them and provide them with detailed explanations of my concept,” he said.

Natalia Subagjo, one of the founders of the foundation giving out the award, which was established in 2003, said bureaucratic reforms were the focus of this year’s award.

“It was not easy to fund non-corrupt individuals in this country,” she said. “But it wasn’t impossible since there are still many individuals who hold onto their integrity and remain unaffected by the habits of those around them. Instead, they are the ones who influence their surroundings.” (gzl)

North Sumatra governor detained over graft case

Cempaka — Fri, 22 Oct 2010 22:53:00 +0000

The Jakarta Post, Jakarta | Fri, 10/22/2010

The Corruption Eradication Commission (KPK) on Friday detained North Sumatra governor Syamsul Arifin in connection with corruption he allegedly committed during his tenure as Langkat regent from 2000 to 2007.

Syamsul Arifin (JP/Apriadi Gunawan)

The alleged graft is estimated to have inflicted Rp 102 billion in losses to the local administration.

After a seven-hour questioning, Syamsul said he was not too surprised by his detention.

“It is partly a risk a leader has to face,” Syamsul told reporters. He declined to comment further.

Syamsul’s attorney, Yoni Agustiono, said his client had conveyed objection to the arrest, citing his health reasons and his duty as the North Sumatra governor.

“However, the investigators rejected his request, saying the mechanism in the commission required them to do so,” Yoni said. (lnd)

Corruption Trail Revealed in Indonesian Government’s ‘Lost’ $1 Billion

Cempaka — Tue, 12 Oct 2010 18:31:00 +0000

Jakarta Globe, Dion Bisara | October 13, 2010

Jakarta. Despite the central government’s efforts to foster improved governance, the state lost about $1 billion last year due to misspent or misappropriated budget allocations, the Supreme Audit Agency reported on Tuesday.

Hadi Poernomo, chairman of the agency, known as the BPK, told a plenary session of the House of Representatives that it had uncovered losses of Rp 9.55 trillion in the financial reports of ministries, state agencies, local governments and state-owned enterprises during the 2009 fiscal year.

Hadi said the results offered clear indications of widespread corruption, and demonstrated the weak internal supervision of government spending and non-compliance with regulations.

Most of the lost money — Rp 4.98 trillion — was channeled through central government ministries and state agencies, and only Rp 40 billion has been returned.

The BPK had for five consecutive years issued a disclaimer on government financial reports, meaning too much data was unclear or missing.

The 2009 reports, in which the $1 billion in losses was discovered, were the first to have all data considered valid.

In citing examples of malfeasance, Hadi pointed to Public Works Ministry, which he said had overpaid contracted consultants by Rp 4.46 billion.

In addition, the price of a Finance Ministry tax office building in Kotamabagu, North Sulawesi, had been marked up by Rp 2.98 billion.

“We also found a false travel expense document in the Home Affairs Ministry that potentially cost the state Rp 1.57 billion,” he said.

Hadi said budget losses in regional and local governments totaled Rp 3.55 trillion, of which only Rp 38.22 billion had been returned.

Some of the unauthorized spending included Rp 6.92 billion on personnel at the Manado municipal government and a Rp 5.24 billion markup in the procurement of health care equipment for the Banten provincial government.

Arif Nur Alam, coordinator of the Indonesia Budget Center, said the BPK report should be a wake-up call for the government to take stronger measures in budget planning and spending.

“President Yudhoyono should use this report to evaluate the ministries, make sure that they use the budget for people’s welfare,” he said.

Arif pointed to the Home Affairs Ministry’s travel budget as a common example of graft.

“The report only strengthens people’s perception that official travel, whatever they tag it, does not serve the needs of the people at all. Their travel is only for their own interests,” he said.

Harry Azhar Azis, deputy chairman of House Commission XI, which oversees financial affairs, said the government should follow up on the BPK report and try to recover as much of the lost money as possible.

“The BPK in the future should not only report the losses, but how much can be recovered as well.”

Harry noted that while some of the losses were certainly due to corruption, others might be a result of simple incompetence.

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Mayors win antigraft award

Cempaka — Tue, 05 Oct 2010 07:38:00 +0000

The Jakarta Post, Jakarta | Tue, 10/05/2010 9:54 AM

The Yogyakarta municipal administration under Mayor Herry Zudianto and Surakarta Mayor Joko Widodo has won the 2010 Bung Hatta Anti-Corruption Award, the panel of judges announced Monday.

The two winners beat 36 other candidates in the selection rounds that took about six weeks.

Zoemrotin K. Susilo, on the judges’ panel, said that both Joko and Herry had succeeded in building transparent systems in their regional administrations.

“They tried to establish transparent budgeting and one-stop public service centers, which have resulted in efficiency,” Zoemrotin said.

One of Herry’s efforts, she said, was to issue a mayoral decree stipulating that the municipal administration would provide schools with an additional budget allocation to eradicate “illegal fees” imposed on students.

“Previously the municipal administration received a lot of reports about the illegal fees. With the issuance of the decree, he tried to respond to the problem and overcome corruption,” she added.

The other winner, Joko, succeeded in handling street vendors in a humane way, Zoemrotin said.

“The municipal administration always communicated with the street vendors instead of just evicting them as is commonly seen in other cities. Joko made a good approach by moving the vendors into strategic business locations and they only had to pay daily retribution fees,” Zoemrotin said.

“Doing this, he has shown that it is not low-income people who should be treated as enemies, but poverty itself,” she added.

According to Zoemrotin, the judges evaluated the nominees based on their credibility, commitment to corruption eradication, and their new systems, along with the impacts. “For example, the reform that Herry initiated has changed the people’s perception of corruption in Yogyakarta. We can also see his breakthroughs in the regulations and their impacts,” she said.

The Bung Hatta Anti-Corruption Award Foundation was established in 2003. It first granted the award to the late Moh. Yamin, Syamsul Qomar, Erry Riyana Hardjapamekas and Karaniya Dharmasaputra in 2003. In the following year, it honored Gamawan Fauzi and Saldi Isra.

After an absence of three years, the foundation issued the award again in 2008 with a focus on law and finance. The award went to former finance minister Sri Mulyani Indrawati, former Corruption Eradication Commission (KPK) deputy leader Amien Sunaryadi, and Judicial Commission chairman M. Busyro Muqoddas.

Natalia Soebagjo, the chairwoman of the foundation that grants the award, said that the 2010 award focused on bureaucratic reform and delivery of public services. “The goal of corruption eradication is to improve public services to the people,” Natalia added.

The judges, Betti Alisjahbana, Zoemrotin, Eko Prasojo and Rikard Bagun, selected the two from eight names who passed two selection rounds. (lnd)

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Officials charged with stealing public funds, bribing auditors

Cempaka — Wed, 29 Sep 2010 11:15:00 +0000

The Jakarta Post, Jakarta | Wed, 09/29/2010 10:29 AM | National

The Corruption Court charged an ex-state company official with embezzlement, costing the state loss of Rp 42.32 billion (US$ 4.73 million) and a Bekasi municipal official with paying Rp 400 million to bribe the Supreme Audit Agency (BPK).

Prosecutors charged the former general manager of the Lampung branch of state electricity monopoly PT PLN, Budi Harsono, for alleged involvement in a graft case linked to the outsourcing of a consumer information system during his tenure from 2004 to 2008.

Bekasi municipal secretary Tjandra Utama Effendi was charged for allegedly bribing BPK auditors to get a clean report.

Prosecutor Pulung Rinandoro said Budi had breached the law for directly appointing a company, PT Altelindo Karyamandiri, rather than running a tender for the above project to run the system.

Prosecutors said Budi received a Rp 3.41 billion bribe from Altelindo commissioner Georgie Kumaat.

In a separate trial, prosecutors charged Tjandra and two other Bekasi officials, Herry Lukmantohari and Herry Suparjan, with offering Rp 400 million in bribes to BPK auditors Suharto and Enang Hernawan.

”The bribe was intended to influence the officials to unconditionally approve a 2009 financial report,” prosecutor Risma Ansyari said.

Prosecutors said that on May 21, Tjandra handed Rp 200 million to Suharto and Enang through Suparjan. Suharto and Enang each took Rp 50 million and gave the rest to the head of the agency, Gunawan Sidauruk.

In June, Tjandra borrowed money from the Bekasi branch of the National Sports Committee to pay a second installment and asked Lukmantohari and Suparjan to deliver another Rp 200 million to Suharto at his house in Bandung, Risma said. (lnd)

Former Home Affairs Minister Hari Sabarno has been named a suspect in the Rp 98.6 billion fire engine corruption scandal by the Corruption Eradication Commission. (Suara Pembaruan Photo)

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South Kalimantan governor named graft suspect

Cempaka — Tue, 28 Sep 2010 14:23:00 +0000

The Jakarta Post, Jakarta | Tue, 09/28/2010 8:30 PM

The Attorney General’s Office has declared South Kalimantan governor Rudy Arifin a suspect in a misappropriation of regional budget in 2002-2003 which caused Rp 6.4 billion (US$700,000) in state losses, when he was the Banjar regent.

Spokesman for the AGO Babul Khoir Harahap said on Tuesday Rudy was declared a graft suspect on Sept. 16 for ordering payment of compensation to PT Golden Martapura, a private paper company belonging to Gunawan Sutanto, for acquisition of a plot of land.

Babul told Antara news agency the payment was unnecessary as the company’s land use permit had already expired.

He said the AGO was waiting for presidential permit to question Rudy, in accordance with the law.

Incumbent governor Rudy and his running mate Rudy Resnawan, who were nominated by the Golkar Party and the United Development Party, won the election by landslide in July, beating among others the pair of Zairullah Azhar and Habib Aboe Bakar, who was nominated by President Susilo Bambang Yudhoyono’s Democratic Party, the Prosperous Justice Party and the National Awakening Party.

Earlier this year the AGO named East Kalimantan governor Awang Faroek Ishak a corruption suspect in connection with divestment of coal company PT Kaltim Prima Coal (KPC) in 2006, when he was the East Kutai regent. The prosecutors believe state losses resulting from the graft case reach Rp 576 billion.