KPK Delves Into Public Servants’ Wealth, Begins Demanding Proof; Indonesia has about five million civil servants, some of whom live in conspicuous luxury way above that which could be afforded on their official incomes

KPK Delves Into Public Servants’ Wealth, Begins Demanding Proof

By Novianti Setuningsih & Carla Isati Octama on 11:05 am September 3, 2013.

By making proactive use of money laundering and anti-corruption laws, Indonesia’s graftbusters are managing to snare a greater number of corrupt officials, and just as importantly, return to the public purse a fortune in stolen funds. Prosecutors in corruption cases are comparing officials’ compulsory personal wealth reports (LHKPN) and personal bank account data collected by the Financial Transaction Reports and Analysis Center (PPATK) with official wage income, often finding wild discrepancies.By using provisions in money-laundering laws, the onus of proof can be placed on the defendants to demonstrate a legitimate source for fabulous wealth accumulated far beyond their government salary income.

The next official to face this strategy is likely to be Waryono Karyo, the secretary general of the Energy and Mineral Resources Ministry.

The Corruption Eradication Commission (KPK) announced on Monday that Waryono’s assets would be assessed in connection with a graft case involving SKKMigas, the country’s upstream oil and gas regulator.

“We will dig deep and inspect everything relevant, including his wealth,” Zulkarnain, the deputy chief of the KPK told the Jakarta Globe on Monday.

Based on his 2011 LHKPN report, which every senior public servant submits to the KPK annually, Waryono possessed cash totaling Rp 41.9 billion ($3.9 million) and owned 200 plots of land in South Jakarta, West Jakarta, South Tangerang, Tegal and Brebes, worth Rp 37.7 billion.

KPK agents seized a bag containing $200,000 in US currency from Waryono’s office in mid-August, shortly after the arrest of SKKMigas chief Rudi Rubiandini on bribery suspicions.

Rudi was charged with accepting hundreds of thousands of US dollars as a bribe from the Singapore-based Kernel Oil company in an alleged attempt to break into Indonesia’s oil industry. More than $300,000 in cash and gold was later found in Rudi’s office and safety deposit box. Two others, Simon Gunawan Tanjaya, of Kernel Oil, and Deviardi, a golf trainer and alleged bagman, were also detained in the Aug. 13 bust.

The reverse burden of proof was most recently applied in the case of former head of National Police Traffic Corps. Insp. Gen Djoko Susilo, recently tried over corruption in the procurement of driving simulators in 2011, which caused Rp 121 billion in losses to public funds.

Prosecutors pointed out that Djoko’s income had for many years far outstripped his official salary.

“The defendant’s total income as a member of the National Police from 2003 until 2010 was Rp 407 million and his additional income was Rp 1.2 billion. But the assets he bought amounted to Rp 54.6 billion,” said prosecutor Rusdi Amin during Djoko’s hearing.

“We came to the conclusion that his wealth was illegitimate,” Rusdi said.

The verdict in Djoko’s case is due today, with prosecutors seeking an 18-year sentence for the top officer on corruption and money laundering charges.

Rarely used

Earlier this year, Attorney General Basrief Arief gave public encouragement for his staff to more frequently force officials suspected of corruption to prove that their wealth was legitimately earned.

Supreme Court Justice Salman Luthan confirmed that prosecutors still rarely asked the court to reverse the burden of proof, despite legal provisions allowing the strategy.

“In the history of the fight against corruption, such articles are used in less than 0.1 percent of the total corruption cases,” Salman said.

Salman lamented an article in the corruption law which allows convicts to serve an additional prison term rather than pay back stolen public funds.

As a result, corruptors often chose to serve extra time rather than hand over their money, he added, and called for a revision of the article.

Screening tool

Wealth reporting data should be used to screen for potential corruption even before particular cases come to light, campaigners say.

Indonesian Forum for Budget Transparency (Fitra) secretary general Yuna Farhan on Monday urged the KPK to use the data it already collects annually to begin more investigations.

“The LHKPN could serve as an entry point to question officials who may be committing graft. The KPK could investigate officials based on their suspicious degree of wealth,” Yuna said.

Yuna added that other instruments would be required in order to constitute proof of wrongdoing.

“LHKPN can be the entry point, but cross checks and verification of documents such as tax returns, suspicious financial transactions and others are needed,” Yuna added.

Yuna said that because LHKPN reports were only updated annually, it could sometimes be difficult to track graft funds which may be moved before reports could be compiled.

“LHKPN is updated on a yearly basis, so it makes it difficult to trace. Therefore, additional documents are needed to back up KPK’s suspicions,” Yuna said.

Indonesia has about five million civil servants, some of whom live in conspicuous luxury way above that which could be afforded on their official incomes.