WEEKLY SUMMARY

Monday, August 3, 2015

Indonesia Corruption Watch (ICW) revealed that they had obtained noteworthy facts, including suspicious indications, regarding some of the remaining 48 names still competing for the leadership of the Corruption Eradication Commission (KPK), who have passed the previous selection rounds. ICW noted they are not ready to release the details since their tracking activities are still underway.

The Attorney General's Office (AGO) have not only investigated the alleged corruption of social aid (Bansos) and subregional aid within the North Sumatra Provincial Government, but also expanded the investigation to School Operational Aid (BOS) mismanagement in the 2012 budget.

Former lawyer for leaders of the Corruption Eradication Commission (KPK), Ahmad Rifai, considered there were inappropriate legal proceedings taken by KPK against the Regent of Morotai, Rusli Sibua. Rifai questioned KPK's move to submit Rusli Sibua's case files to the Corruption Court before Rusli's pretrial verdict is released by South Jakarta District Court.

Tuesday, August 4, 2015

Chief of the Police Criminal Investigation Unit (Bareskrim), Commissioner General Budi Waseso affirmed that ICW activists, Adnan Topan Husodo and Emerson Yuntho, are potentially charged with the criminal code. According to him, this entirely depends on results of their ongoing probes.

Governor of North Sumatera Gatot Pujo Nugroho and his wife, Evy Susanti, pleaded for their case to be handled by KPK. However, the AGO insisted that they will continue to handle and investigate the case involving alleged corruption of social aid fund (bansos) in the North Sumatera Provincial Administration.

KPK stands firm in their stance that the detention of OC Kaligis was executed in accordance to procedures. The subsequent pretrial appeal filed by Kaligis' lawyers is considered to be common and KPK is prepared to confront these challenges.

Bareskrim arrested an official at Jakarta capital administration (DKI), Zaenal Solaeman, who was previously named as suspect on the alleged corruption of Uninterrupted Power Supply (UPS) procurement. Zaenal was detained at the Police HQ confinement after questioning.

Wednesday, August 5, 2015

In the trails of his involvement on bribery currently under investigation by the KPK, Governor of North Sumatera Gatot Pujo Nugroho is also accused by the Interior Ministry of abusing his authority. It was revealed that in last February the Ministry had informed Gatot regarding a special examination regarding the case.

The Jakarta branch of AGO refuse to resign their investigation on the alleged corruption in the development of 21 main electricity relay stations in Java, Bali and Nusa Tenggara. The office is set to issue a new investigation warrant after the South Jakarta District Court annulled their decision to name Dahlan Iskan as suspect.

AGO had denied a demand by the detained Governor of North Sumatera, Gatot Pujo Nugroho, to let KPK handle investigations of his case, the alleged corruption of social aid fund in the province.

KPK had named Ruslan Abdul Gani, Regent of Bener Meriah in Aceh, as a suspect in the alleged corruption on Sabang port development project, which was part of Sabang Free Trade and Ports Region Program during the budget year 2006-2011.

Thursday, August 6, 2015

The bribery case at Medan Administrative Court (PTUN) began to implicate various parties. Chairman of the National Democrat Party (Nasdem) Surya Paloh and Deputy Governor of North Sumatera Tengku Erry Nuradi, who is also Chairman of the North Sumatra branch of Nasdem, was mentioned by witnesses when questioned by investigators from KPK.

Former Head of the Special Task Force for Upstream Oil and Gas Business (SKK Migas) Rudi Rubiandini confessed to delivering USD 150,000 for Waryono Karno, Secretary General of the Energy and Mineral Resources Ministry, in May 2013.

From January to August 2015, 138 cases of corruption in South and West Sulawesi (Sulselbar) stalled in the hands of police and prosecutors. Anti Corruption Committee (ACC) of Sulawesi released data on stagnant cases today.

Governor of Jakarta Basuki Tjahaja Purnama (Ahok) does not agree with the discourse to give death penalties for corruption convicts which is being developed by Nahdlatul Ulama (NU) at their 33rd convention in Jombang, East Java. According to Ahok, death penalty do not guarantee that perpetrators of corruption will receive rightful punishment for their crimes. He preferred the option to impoverish corruptors as the more appropriate punishment.

AGO (Kejagung) handed over prosecution of corruption involving Regent of Sarmi, Mesak Manibor, to their Jayapura district branch (Kejari). The decision was taken after the prosecution documents was recently declared complete for further processing.

Friday, August 7, 2015

Muhammadiyah announced a “Movement Against Corruption” (Berjamaah Lawan Korupsi) as a primary instrument for the massive Moslem organization to educate and to promote national progress. Corruption is seen as an extraordinary crime that had ravaged public interests and derail development plans.

Former Minister of Religion, Suryadharma Ali denied allegations of misusing the ministers operational funds (DOM). He argued that if DOM funds are used for personal interests, that makes it a personal loan, which he had returned.

AGO arrested Director of CV Bulao Kencana Mukti, Haruan Suarsono, a suspect in corruption of contraceptive tool Intrauterine Device (IUD) Kit at the National Family Planning Coordinating Board (BKKBN). Haruan is the last suspect detained by AGO after five other suspects in the case were already detained.

Aceh Anti-Corruption Movement (Gerak) urged the Police and Attorney General to investigate alleged corruption in the Aceh Provincial Water Office. Gerak suspected 17 projects were ordered with Direct Appointment (PL) without bidding using the local budget during the fiscal year 2013-2014. These projects are potentially corrupted with state loss amounting up to Rp 224 billion.

Bareskrim plan to question former Executive Director of TPPI Honggo Wendratmo in the alleged corruption of high speed diesel fuel sale to PLN in 2010. Previously, Bareskrim had named former Director of Primary Energy in PLN Nur Pamudji as suspect and had questioned former Executive Director of PLN Dahlan Iskan as witness.

KEY DEVELOPMENTS

August 3, 2015

• ICW finds concerns on some of the 48 KPK candidates
• AGO probes BOS fund irregularities

August 4, 2015

• Budi Waseso: 2 ICW activists potentially named as suspects
• Gatot and Evy requested KPK investigation
• KPK set to confront Kaligis' moves
• Bareskrim arrested UPS corruption suspect Zaenal Solaman

August 5, 2015

• Interior ministry probe Gatot on abuse of power
• Jakarta AGO to issue new warrant for Dahlan Iskan
• AGO denied Gatot's plea to handover his case to KPK
• Ruslan Abdul Gani, Regent of Bener Meriah Aceh named as suspect in port construction corruption

August 6, 2015

• Witness: Bribery of Medan judges implicate Nasdem chiefs
• Rudi confess of giving money to Waryono
• ACC: 138 corruption cases stalled in Sulselbar
• Sarmi Regent's case handed to Kejari Jayapura

August 7, 2015

• Muhammadiyah against electing corrupt leaders
• SDA deny corruption, only borrowing
• Gerak urge investigation of 17 project at Aceh Water Office
• Corruption of PLN Fuel: Investigators to question Honggo next week
• OC Kaligis refuse to sign the completed examination file

IN-DEPTH ANALYSIS

Testing KPK's Mettle

Attempts to cripple the anti-corruption agenda, either with political or legal contrivances, goes on. The Legislation Board at the House of Representatives (Baleg DPR) has quietly passed the Priority Legislation Drafts for 2016, in which Law on the Corruption Eradication Commission (KPK) is a target.

In spite of President Joko Widodo's explicit official statement to reject deliberation on KPK Law revision, there's an apparent executive discord with Minister of Law and Human Rights directly opposing the President. This situation sustained an ample political push to revise KPK Law, regardless of the President's stance against the plan. This rift also implies a weak political position of the President before the elite of political parties that constitute his cabinet.

At the same time, reports of alleged abuse of power by KPK submitted to Bareskrim provide ammunition to incapacitate corruption investigation agenda. OC Kaligis, a famous lawyer often representing corruption suspects who was himself named as suspect of bribery by KPK, recently reported an alleged abuse of power by KPK to Bareskrim Polri. (http://www.tribunnews.com/nasional/2015/08/06/bareskrim-polri-terima-laporan-soal-penculikan-oc-kaligis-oleh-kpk).

The report was immediately responded with Chief of Bareskrim Commissioner General Budi Waseso publicly announcing that his institution will promptly address the report. The Police had even planned to question OC Kaligis as the plaintiff, even though he is undergoing legal process at KPK at the same time. OC Kaligis was allegedly involved in bribery by Governor of North Sumatera Gatot Pujo Nugroho and his wife, Evi Susanti. Budi Waseso's rapid response on OC Kaligis' report again incited controversy that could start an unnecessary new strain in the relationship between KPK and the Police.
(http://news.liputan6.com/read/2287695/bareskrim-kaji-laporan-dugaan-penculikan-oc-kaligis).

Meanwhile, the prolonged process of the cases against KPK's Bambang Widjojanto, Abraham Samad and Novel Baswedan, demonstrated the fact that political support for KPK and the national corruption eradication agenda in general is at a low point. The President's political intervention, which was expected to hold off criminalization attacks against KPK, evidently have no consequence. Clearly, the primary objective of incriminating key personnel in KPK is to prevent them from taking strong actions in eradicating corruption; particularly when KPK's actions began to unsettle the status quo.

In the face of such adversity, KPK refuses to submit. They continue to crack down on corruption, even making use of their well-known red-handed arrest operations (OTT), as in the case of OC Kaligis. Albeit having several of their key players stifled, KPK managed to sustain investigations in various corruption cases. Most recently, KPK named the Regent of Bener Meriah in Aceh, Ruslan Abdul Gani, as a suspect in an alleged corruption of port construction.
(http://aceh.tribunnews.com/2015/08/04/kpk-tetapkan-bupati-bener-meriah-tersangka).

KPK will continue to fend off various kinds of attacks against their crusade. Therefore, if the President truly means his campaign promises about eradicating corruption, Joko Widodo should recognize the urgent need to provide protection and political support for the anti-graft body, thus turning from the slow but sure path that would see KPK exist only on the nation's history books.***

Corruption of Social Aid Funds

The allegation against Governor of North Sumatera, Gatot Pujo Nugroho, is the next in a long list of local leaders that have been implicated in corruption. To make matters worse, in addition to an alleged bribery for judges, Gatot will also undergo investigation on alleged corruption of social aid funds (Bansos).
http://www.tribunnews.com/nasional/2015/08/07/kejagung-tetap-incar-gubernur-sumut-dalam-kasus-dugaan-korupsi-bansos

The bribery was exposed when KPK executed a red-handed arrest operation (OTT) on M Yagari Bhastara (Gery) along with Chairman of the Administrative Court (PTUN) in Medan, Tripeni Irianto Putro, two PTUN judges, Amir Fauzi and Dermawan Ginting, as well as a court clerk Syamsir Yusfan. As the case unfolded, KPK also named Gatot and his wife Evy Susanti, as suspects. Both were implicated in bribery for the judges and clerks of PTUN Medan after KPK expanded investigation and questioned witnesses.
http://nasional.kompas.com/read/2015/07/28/18192831/KPK.Tetapkan.Gubernur.Sumut.dan.Istrinya.sebagai.Tersangka

The bribery began with an investigation of alleged corruption of social aid funds within the Provincial Administration (Pemprov) of North Sumatera, which was contested by Pemprov at Medan Administrative Court. The case had stagnated at the Attorney General of North Sumatera before it was handed over to the central Attorney General's Office (AGO). While hearings on this case were being organized at PTUN Medan, KPK arrested Gery with the judges and clerks. KPK also suspected Gery's boss, famous lawyer OC Kaligis, to be involved in the bribery. At the moment, Gery, the judges and clerks, as well as OC Kaligis have all been arrested.

Corruption of social aid funds is not a new phenomenon. Before the case in North Sumatera, many other regions had been enmeshed in bansos fund abuse, such as the municipalities of Bengkulu, Bandung and Bengkalis, all in the fiscal year of 2012, the Central Java province in 2010, and many others.

As cited from a monitoring data released by Indonesia Corruption Watch (ICW) for the period of 2007-2012, at least 120 cases was investigated by various law enforcement agencies. These cases tend to take place prior to local elections (Pilkada).

The troubles with social aid fund should not be underestimated as it involve huge amounts of taxpayers money. Between 2007 and 2013, the government had splashed Rp 411,34 trillion in social aid funds, which were distributed through national (APBN) as well as local (APBD) budgets.
http://antikorupsi.info/id/content/dana-bantuan-koruptor

Reflecting on ICW's study, there are several things that can be done to overcome this problem. Firstly, stringent supervision by the Ministry of Finance on every other ministry that manage social aid budget is obligatory in order to avoid political motives in the distribution and allocation of social aid funds. A moratorium of social aid funds should be considered if any irregularity is found.

Second, the State Audit (BPK) should execute investigative audit of APBN and APBD regarding social aid expenses. Third, the legislative and executive authorities should design budgets that uphold state financial management principles based on performance, efficiency and effectiveness.

And fourth, social aid budget users should be prohibited to use these funds for electoral interests, either through manipulation of received budget or with biased expenditures, obscuring social aid distribution with image building for themselves or their political parties.

Monitoring of social aid funds required the attention of all parties. Moreover, by the end of this year (9/12), Indonesia will have its first simultaneous election throughout the country. It would be befitting to keep a watchful eye on the incumbents who have the means to use social aid funds for their political gains.***