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Law’s Application Could Return Funds to State
Rizky Amelia | February 14, 2012

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DrDez
2:29pm Feb 14, 2012

padt

Its actually very clear - it states that public money obtained by fraud should be returned up to the sum specified as theft. BUT The sum specified by theft is the amount they are accused of taking. So for example for Naz he is said to have caused public loss of $400K when the actual gain was possibly millions -

He will if found guilty be required to return said $400K OR this is the real joke - serve a further spell in jail not exceeding 6 months

So here is a scenerio based on an actual case some years ago.

A junior official earning cRp12m is charged with fraud - his assets alone are worth in excess of $20m inc about $8m cash

But to secure a conviction the KPK alledge state loss of $250K. He is found guilty and sentenced to 4 years and a fine plus he is required to pay back $250K. He does so, then after 2 yrs is freed

Leaving him with some $20m. At which point he moves onto the same appartment complex we use in Sing.

Deterrent? Not a chance anything will change - just worsen

padt
1:12pm Feb 14, 2012

I am always confused about this because the reporting is always vague. Perhaps someone can state it clearly and unambiguously: When a politician or official is found guilty of corruption and embezzlement or theft of any state funds and either here or overseas has those funds in his bank/pocket/property/wife's account or anywhere, is that money taken back by the state - or does the corrupt politician keep it? I always had a feeling that somehow in the farce that is Indonesian law, the creeps end up keeping the money. They just get a ridiculously low sentence and stay in prison (with perks) for a short time - then come out - with all the money they stole or embezzled intact still theirs, because the courts never pursue and find the money. Is that the case? Sounds like it from this article.

One could understand if it was the case because the judges who hand out the insulting sentences (in terms of the short time to be served for major crimes) need to get some of the money. And do.

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The use of the 2010 money-laundering law by the Corruption Eradication Commission has been hailed as a breakthrough that could bring more suspects to justice and help the return of graft money to the state.

Johan Budi, spokesman for the commission known as the KPK, said the antigraft body was only now ready to implement the law because it needed a thorough understanding of the legislation, as well as the support from other institutions, especially the Financial Transaction Reports and Analysis Center (PPATK).

On Monday, the KPK said that it would add charge of money laundering against Muhammad Nazaruddin, who has been named suspect under the anti-corruption law for his role in the Southeast Asian Games scandal.

“It is the first time we will use the law. This is a breakthrough,” he said.

Johan said the use of the money-laundering law would not stop with Nazaruddin.

“This is not the first or the last. But we will need the help from PPATK. They will supply the data to us,” the spokesman said.

He also said the KPK would apply the law to all cases related to public officials swindling money and channelling it to other parties.

The PPATK welcomed the KPK’s decision on to use the law, saying it would give the KPK the support it needed.

“This is a good development. We will back them,” PPATK deputy head Agus Susanto said on Monday.

Indonesia Corruption Watch said using of the law would enable the KPK to widen its investigation of those accused of receiving stolen money and help return the nation’s money.

“It will be very effective in returning the state’s money,” ICW researcher Donal Fariz said. He said that the law could be used, for example, in charging Nazaruddin’s wife, Neneng Sri Wahyuni.

Donal said that the money-laundering law could be used to pursue the Bank Century scandal case, which the Supreme Audit Agency (BPK) and the House of Representatives have confirmed to have caused Rp 6.7 trillion ($744 million) in state losses.

Critics of the KPK have said the antigraft organization has lost steam in investigating the case.