Yudhoyono's men trade charges of corruption

The Straits Times, February 27, 2007
By Salim Osman, INDONESIA CORRESPONDENT


President's move to resolve row raises questions over anti-graft drive

JAKARTA - A PUBLIC spat between a Cabinet minister and the anti-corruption chief over graft allegations has dragged President Susilo Bambang Yudhoyono into the controversy.

State Secretary Yusril Ihza Mahendra took offence last week when he was investigated by the Corruption Eradication Commission (KPK) in a probe on a company that provided an automatic fingerprint identification system worth 18.4 billion rupiah (S$3 million) without tender when he was the Law Minister in September 2004.

He filed a complaint against KPK chief Taufiquerachman Ruki a day later for appointing a company to provide KPK with wiretapping devices worth 34 billion rupiah also without tender in 2005.

Both men are accusing each other of violating a 2003 presidential regulation that requires officials to call for public tender in procuring goods and services.

Officials can only appoint a company without public tender under exceptional circumstances such as time constraints and in the interest of national security.

Mr Yusril, who joined the Yudhoyono Cabinet in October 2004, claimed that the anti-graft commission should investigate its own chief as there was a possibility of a 'mark-up' in the procurement of the devices which, he said, should not cost more than 12 billion rupiah.

But the KPK shot back by saying that the procurement was approved by President Yudhoyono in a letter which Mr Yusril himself had signed on behalf of the palace.

It said Mr Yusril had to be questioned because the company providing the fingerprint identification system that he had approved in 2004 was now under investigation for corruption.

Two officials of his former ministry had been detained while the company owner was also being held for alleged corruption which had caused the state to lose six billion rupiah, being the mark-up for the actual cost of the project.

One of the officials in charge of the project was said to have received 375 million rupiah in kickbacks from the company before Mr Yusril approved its appointment.

Amid the spat that has embarrassed his government, Dr Yudhoyono stepped in on Friday and said: 'Procurement through direct appointment is allowed under the regulation. Officials should not fear being accused of corruption if they carry out procurements according to the regulations.'

His intervention has not settled the rift between the two officials as the KPK has maintained that it would press ahead with its probe on Mr Yusril.

But analysts say that the President's intervention raised questions about the government's commitment in dealing with graft cases involving high-ranking officials.

The anti-corruption activists also questioned the need for the President to intervene in the conflict, saying that he should have let the law take its course instead of appearing to be protecting them.

'The President cannot suggest that Mr Yusril and Mr Ruki have not broken the law. Let those who enforce the law decide on the matter,' said analyst Denny Indrayana of the University of Gajah Mada in Yogyakarta.