HOUSE MOVE TO INVESTIGATE KPK GETS MIXED REACTIONS

by Andi Abdussalam

Jakarta, April 28 (Antara) - The House of Representatives' (DPR's) decision to exercise its right to launch an inquiry into the Corruption Eradication Commission (KPK) over its probe into the alleged electronic identity (e-ID) card graft scandal is getting mixed reactions.          The Indonesia Corruption Watch (ICW) said the decision to carry out the inquiry right has its legal flaws, because it has been decided upon without following a mechanism as regulated by law.          Yogyakarta-based Gajah Mada University's Anticorruption Study Center (Pukat) said the initiative to exercise the right to conduct an inquiry into the KPK is against the law. It said the House inquiry right should be used against the government, not against a law enforcing agency, such as the KPK.          DPR, in its plenary session on Friday, had approved a controversial move by several lawmakers to exercise its right to inquiry on the performance of the KPK. The motion came after the anti-graft agency rejected an earlier request of Commission III of the DPR to hand over a recorded copy of the dossiers of lawmaker Miryam S. Haryani, who is implicated in a Rp5.9 trillion scandal over the procurement of e-ID cards.

LEGISLATORS FAIL TO PASS TAX MAFIA INQUIRY MOTION

By Andi Abdussalam

Jakarta, Feb 22 (ANTARA) - The initiators of the tax mafia inquiry failed to win the House approval in its plenary on Tuesday after 264 lawmakers voted for while 266 others voted against the motion.          The tax mafia inquiry motion has been proposed as part of the efforts of legislators to investigate alleged tax mafia cases and flows of defrauded taxes that caused an annual loss of about Rp300 trillion to the state.         "Of the 530 House members who are present, 264 voted for the motion and 266 voted against it. Thus, the tax mafia inquiry motion is rejected," DPR Speaker Marzuki Alie said when closing the plenary meeting on Tuesday.          The initiators  submitted the tax mafia inquiry motion to the House of Representatives early this month and was signed by 111 lawmakers. It was submitted by its initiators such as legislators Bambang Soesatyo and Nudirman Munir of the Golkar Party faction, Trimedya Panjaitan of the Indonesian Democratic Party of Struggle (PDIP) faction, Ahmad Yani of the United Development Party (PPP) and Lily Wahid of the National Awakening Party (PKB).          Initially, the initiators of the inquiry motion were optimistic that the House would accept the proposal because it would investigate alleged tax mafia cases and defrauded taxes.          According to Ahmad Yani of the PPP faction, leakage of the state revenues from the tax sector is estimated to amount to Rp300 trillion per year. This figure is quite big as it accounts for 30 percent of the state budget.          "If this leakage could be stopped Indonesia would be able to carry out better development and need not borrow money from abroad," he said.           Yet, it turned out that the House rejected it. Of the nine party factions in the House, five rejected with 266 votes and four voted for it with 264 votes.          Earlier, the decision was made through an open voting. In the voting, a total of 145 members of the Democrat Party (PD) faction were present and all voted against the proposal.           The National Mandate Party (PAN) faction members attending the voting totaled 43 and all voted against the proposal. The United Development Party (PPP) faction members who were present numbered 26 legislators, all of whom also agreed to reject the inquiry proposal.          Of the 28 members of the National Awakening Party (PKB) faction, 26 rejected the inquiry. A total of 26 members of Gerindra (Great Indonesian Movement Party) faction were present and all rejected the proposal.           In the meantime, a total of 106 members of the Golkar faction took part in the voting, all of whom were solid to vote for the motion. So was the Indonesian Democratic Party of Struggle (PDIP)  where 84 of its members were present and voted for the move.          The same acceptance also came from the Prosperous Justice Party (PKS) faction where 56 of its members voted for the motion. Sixteen legislators from the People's Conscience Party (Hanura) all voted for the inquiry proposal.          With regard to the rejection of the inquiry committee motion, the Golkar Party Faction  (FPG) chairman, Setya Novanto, apologized to the Indonesian people for his party's defeat in the voting.           "F-PG thanked the Indonesian people, particularly the PDIP, Hanura and PKS which had done various attempts to support the motion. On behalf of the Golkar Party, I apologize to the Indonesian people for the fact that we were defeated in the voting," FPG Chairman Setya Novanto  said after the plenary.          Setya said that Golkar would soon carry out thorough evaluation on the government. His colleague, Ade Komaruddin who is also FPG secretary said when he read Golkar's political statement that the inquiry motion was submitted not for discrediting individuals.          "But it is merely intended to make improvement in the national taxation system particularly in the state revenue sector," said Ade adding that reforms in the national taxation system as a source of income for the state needed to be carried out.          Taxation system reforms since 1983 have not yet been able to solve the taxation problem comprehensively. "So far we are not yet able to comprehensively solve the taxation system," he said.          The tax cases involving former taxman Gayus Tambunan or Bahasyim indicated the leakage in the taxation sector required the tax systems should be improved comprehensively.          Yet, the attempt to set up an inquiry committee on tax mafia has been aborted at the plenary meeting of the House.          According to Ichsanuddin Noorsy, an observer of the Indonesian Political and Economic Association, the House rejection of the inquiry motion was proof of the strong lobbying by big tax dodger companies, including transnational firms, in the House of Representatives.          "This rejection will adversely perpetuate the exploitation of Indonesia's economy by transnational companies through tax evasion which would also maintain the tax mafia modus operandi. The statement that the inquiry would cause damage to the investment climate well explains that indeed taxes have been manipulated," Ichsanuddin Noorsy said.      (T.A014/A/HAJM/00;40/A/S012) 23-02-2011 01:04:

TAX MAFIA INQUIRY MOTION GAINING MORE SUPPORTERS

By Andi Abdussalam

Jakarta, Feb 3 (ANTARA) - Initiators are optimistic that the House of Representatives (DPR) will pass a House inquiry committee motion they are proposing to investigate alleged tax mafia and flows of defrauded taxes that caused an annual loss of about Rp300 trillion to the state.          "Five factions of the DPR have thrown their support behind the tax inquiry motion so that we are optimistic that the proposal to form an inquiry committee would be endorsed by the DPR in the plenary," Syarifuddin Sudding of the People's Conscience Party (Hanura) who is also one of the initiators said.          The initiators on Wednesday submitted the tax mafia inquiry motion signed by 111 lawmakers to the House of Representatives and  received by Deputy House Speaker Priyo Budi Santoso. It was submitted by its initiators such as legislators Bambang Soesatyo and Nudirman Munir of the Golkar Party faction, Trimedya Panjaitan of the Indonesian Democratic Party of Struggle (PDIP) faction, Ahmad Yani of the United Development Party (PPP) and Lily Wahid of the National Awakening Party (PKB).          It was the second time the proposal for the establishment of the tax mafia inquiry committee motion was submitted to the House. On Monday, January 24 last month, the initiators submitted the proposal which was signed by 30 legislators of the nine House factions to the House leadership.          However, when the House leadership was about to hold a meeting to take a decision on the proposal, seven signatories from the ruling Democrat Party (PD) withdrew their support. Therefore, the House leadership returned the proposal to its initiators to increase the number of its supporters or risk being dropped. After all, two others followed their colleagues to withdraw support, namely one from the Democrat Party and two from the PKB.          Now that the number of its supporters has risen to 111, the proposal was submitted again and its initiators expressed optimism to win House approval.          "After verification we found that a number of 111 legislators from eight House factions have put their signatures and supported the proposal," Syarifuddin Sudding said.          He said that the 111 lawmakers excluded the 10 House members who have withdrawn their support, namely eight from the Democrat Party and two from the PKB.          "Today there are 111 lawmakers who have supported the proposal from various factions and we have submitted it to the House leadership," Sudding said. The largest number of supporters came from the Golkar Party faction (FPG) namely 78 lawmakers.          The second largest came from the PDIP faction (14), PKS (9), PPP (2), National Mandate Party (PAN) and PKB respectively one, Hanura (8) and the Great Indonesia Movement (Gerindra) two members.          Sudding said that FPG had informed that all of its members would support the motion, and so would the PDIP faction. He said five of the nine factions in the House had expressed support to the motion.          The five factions are FPG with total members of 106, PDIP faction (94), Prosperous Justice Party (PKS) faction (57), Gerindra faction (26) and Hanura faction(17).          "We are optimistic the House will pass the motion as it has won the support of five factions in the House," he added.          He said that if five factions fully support the proposal it meant that the move would get support from 310 House members. There is still additional support from individuals who do not involve their factions.          Sudding said that the tax mafia inquiry motion was submitted to the House with an enclosed document on the audit results of the State Audit Board (BPK) on six tax-payer firms believed to have defrauded taxes.           "We are thankful to the Working Committee on Taxation of the House Commission XI who has asked the BPK to conduct an investigative auditing on tax payers," Sudding said.          Trimedya Panjaitan of the PDIP faction said the aim of legislators in proposing the inquiry motion was to investigate areas where taxes had been leaked. The inquiry committee would trace which firms had defrauded taxes and the flows of the leaked taxes. Efforts would be made how to mend the leakage so that the state revenues from the tax sector would increase.          Lily Wahid of the PKB faction said the inquiry was expected to disclose tax mafia which so far could not be uncovered by law enforcers. It is hoped that the tax mafia case would transparently be made public.          "Initiators want the inquiry committee to have no political interest but an interest how the state revenues could be increased," she said.          She said that if the state revenues from the tax sector were not leaked, Indonesia could be prosperous and needed no external debts.          According to Ahmad Yani of the PPP faction, leakage of the state revenues from the tax sector is estimated to amount to Rp300 trillion per year. This figure is quite big as it accounts for 30 percent of the state budget.          "If this leakage could be stopped Indonesia would be able to carry out better development and need not borrow money from abroad," he said.      (T.A014/A/H-NG/A/S012) 03-02-2011 14:24

HOUSE NEEDS INQUIRY COMMITTEE ON TAX MAFIA

By Andi Abdussalam

          Jakarta, Jan 25 (ANTARA) - At least 30 legislators from nine factions in the House of Representatives (DPR) have submitted a proposal to the House leadership for the establishment of a special tax mafia inquiry committee.

         The proposal was made in response to the fact that the government and law enforcers were not yet able to settle alleged cases of tax mafia that had caused hundreds of trillions of rupiahs in losses to the state.

         "We gather support from the DPR members to form a House special inquiry committee. We have submitted the list of signatures to the House," Nudirman Munir of the House Commission III on legal affairs said.

         The proposal which was signed by 30 legislators was handed over to the House leadership on Monday and was received by House Deputy Speaker Priyo Budi Santoso.

         The proposal was among others signed by Nudirman Munir  and   Bambang Soesatyo of the Golkar faction, Sucipto of the Democrat Party faction, Bahruddin Nashori of the National Awakening Party faction,  Ahmad Yani of the United Development Party (PPP), Syeh Buchori Yusuf of the Prosperous Justice Party faction (PKS),  Gayus Lumbuun and Eva Kusuma Sundari of the Indonesian Democratic Party of Struggle faction (PDI-P), Yadil Harahap of the National Mandate Party faction (PAN), and Desmond J Mahesa of the Great Indonesia Movement Party faction (Gerindra).

         According to Nudirman, the proposal was made because the settlement of the tax case of former taxman Gayus HP Tambunan was too slow. "Moreover, as a result of tax mafia alleged operations, the state suffers losses up to hundreds of trillions of rupiah," he said.

         Ahmad Yani of PPP said tax leakages should be halted soon because the state had suffered a loss of up to Rp300 trillion annually. If this could be overcome, the government does not need to ask for help from overseas and the people could enjoy prosperity.

         He said that he was convinced that the proposal would be accepted because it had the aim to increase state revenues. "We promise to uncover transparently and uncompromisingly the tax mafia in the country through this special committee," he said.

         However, several legislators from the Democrat Party faction said the formation of a tax mafia inquiry committee had no strong basis.

         "We have to question the basis of the proposal to set up an inquiry committee. Is the basis coming from the media reports or from rumors or from tax payers?," Achsanul Qosasi of the ruling Democrat Party faction, questioned.

          He said that up to now no tax-payers had complained or disclosed the presence of a tax mafia. So, he questioned the basis for the formation of a special inquiry committee.

         Achsanul said that the House Commission XI which dealt with financial and budget affairs had discussed the tax mafia case and found that the main problem of all this was the need by the State Audit Board (BPK) to conduct an investigative auditing.

         "Actually, BPK has conducted an investigative auditing on two firms often mentioned by the media. The result of the auditing has been handed over to the House Commission XI and the Commission has agreed the formation of a special committee. So, our colleagues who are proposing to set up an inquiry committee have no clear basis," he said.

         Therefore, he said, the formation of a special inquiry committee on tax mafia is still too  far if it is not supported by valid and accurate data. "The proposal to form the committee is a remote possibility because data that we received are not enough to support the idea," Achsanul Qosasih.  
    Therefore, he said, the Democrat Party (PD) did not agree with the proposal to form a tax mafia inquiry committee.

         His colleague in the same faction, Muhammad Jafar Hafsah, also voiced the same thing. "The Democrat Party faction has not yet decided its attitude on the proposal to set up an tax mafia inquiry committee," Muhammad Jafa Hafsah who is also the faction chairman said.

         He said that it was not yet too urgent to form an inquiry committee on tax mafia because the matter still could be tackled by a tax working committee in the Commission level as far as the work of the working committee could be maximized.

         In the meantime, legislators who submitted the proposal on Monday questioned the House leaders who had not yet discussed the proposal in the House plenary on Tuesday.

        Nudirman Munir and Arya Bima of the PDI-P questioned the fact that on Monday the plenary had not yet discussed it.

        "We submitted the proposal which was signed by 30 lawmakers from nine House factions. But it did not included in today?s plenary ,"Nudirman said during the plenary which was chaired by Deputy House Speaker Priyo Budi Santoso on Tuesday.

         He said that based on the mechanism, the proposal should have been deliberated directly. "Based on the mechanism, the proposal is submitted to the plenary," he said.

         Yet, House Speaker Priyo Budi Santoso promised that the House would not annul or impede the proposal.  "Yesterday, I received the proposal which was signed by about 30 legislators from nine House factions. The House leadership would not drop it," Priyo said.        
    "Yesterday, the proposal happened to be discussed with several House leaders and some agreed to discuss it at a leadership meeting so that it could not yet be deliberated at the plenary today," he said.

         He said that the leadership would hand over the matter to the plenary for acceptance or refusal. "If the proposal is accepted it will than be handed over to the House's Assembly Board (Bamus)," he said.

        Priyo said that the House would discuss the proposal at its plenary on Wednesday. "It is impossible for the leadership to drop the proposal but to deliberate it in the next plenary," he said.

    
(T.A014/H-NG/A/R013)

(T.A014/A/A014/R013) 25-01-2011 22:35

GOVT READY TO FACE HOUSE PROBE INTO BANK CENTURY CASE

By Andi Abdussalam
Jakarta, Nov 13 (ANTARA) - The government said on Friday it was ready to face a House motion to probe the Rp6.7 trillion (US$723 million) bailout it had provided for ailing Bank Century.

        A total of 139 legislators officially submitted on Thursday a proposal to form an inquiry team for the investigation of the bailout. Ailing Bank Century was taken over by the Deposit Insurance Agency (LPS) late last year after it had a liquidity problem and was unable to refund its customers' money.

        The inquiry proposal was submitted by around 30 members of the House of Representatives (DPR) representing 139 members from seven factions that had given their signatures.

        Vice President Boedino said the initiative of a number of legislators to form an inquiry committee on the Bank Century case was a normal thing, and the government was ready to provide the needed information.

        "It (the inquiry initiative) is a normal thing. So, please go ahead. The main purpose is to make it clear to the public," the vice president told a press conference at his office here on Friday.

        Indications of criminal offenses in the Bank Century case were revealed during a closed-door meeting of the House of Representatives (DPR)'s Commission XI for financial affairs at the end of September, 2009. After studying the results of a progress report by the State Audit Board (BPK), the House found that various banking crimes had taken place in the bank.

        The interim audit report also indicated that abuse of authority or error of judgment by Bank Indonesia (BI/the central bank) and the Financial Sector Stability Committee (KSSK) had also occurred that had caused a considerable amount of financial loss to the state.

        After all, the funds were disbursed under Government Regulation in lieu of Law No. 4 / 2008 on Financial System Safety Net (JPSK) which basically was never approved by the House.

        The BPK auditors had said they had found irregularities in the disbursement of Rp6.7 trillion to bail out the bank. The bailout amount was far bigger than the Rp1.3 trillion previously discussed with the House.

        However, House Speaker Marzuki Alie refused to sign the inquiry proposal on Thursday. He said he would not sign the proposal to exercise the right of inquiry over f Bank Century case pending the final audit result from the State Audit Board (BPK).

        "The proposal came from around 140 members of the House of Representatives (DPR). Around 400 others still have yet to sign it. My position is like that of the other 400 members," he said when receiving the proposal at his office at the parliament building.

        The seven factions of the House which had supported the proposed inquiry were the Indonesian Democratic Party-Struggle (PDI-P), Golkar Party, United Development Party (PPP), National Awakening Party (PKB), People's Conscience Party (Hanura), Greater Indonesia Movement Party (Gerindra), and Prosperous Justice Party (PKS).

        However, House Speaker Marzuki Alie, who is also the secretary general of the ruling Democrat Party said support for the proposal was a commitment of individuals and factions. The Democrat Party faction will not as yet take a stance and prefer to wait for the final report from the BPK, he said.

        As the House Speaker, he said, he welcomed the aspirations of the 139 members.

        He said their proposal would be immediately discussed at a Consultative Body (Bamus) meeting. Marzuki said the proposal had already been discussed at DPR leadership level and the DPR leadership had decided to pass it on to the Bamus so that the Bank Century problem could be made more transparent and clearer.

        In the meantime, Vice President Boediono said the people needed clear information about the Bank Century case. Therefore, the government was ready to provide explanations.

        "We will provide whatever information is needed by the people. The people need clarifications so that they need not continue to question it and work again as usual," Boediono said.

        Boediono, who was the BI Governor when the bailout funds were disbursed, even said he was ready to be questioned by a House inquiry team to make the matter clear. "The vice president is also a citizen. As a citizen, I am ready to be questioned," he told a press conference.

        The government's decision to bail out the ailing bank at the time was an effort to overcome an emergency situation. There was an extraordinary problem, including a liquidity problem. So, if any criminal act had been committed in the bail-out process, it should be investigated, no matter who was involved.

        "So, we did not do anything wrong. Everything was based on existing regulations," the vice president added. He said people needed to understand the salvaging efforts made during the emergency situation, particularly to safeguard the system. If fraud proved to have taken place, it should be investigated, he added.

        "In an emergency situation we should first take salvaging measures, but if it later turns out fraud was committed in the process, that is another problem," he said.

        In the meantime, about 30 customers of Bank Century domiciled in Jakarta lodged a complaint with the Corruption Eradication Commission (KPK) on Friday, asking the anti-graft body to investigate suspected corruption at the bank. They asked the body to investigate the case because until now they had not been able to withdraw the funds they had deposited at the bank.

        This had happened although the ailing bank had been taken over by the LPS and had received bailout funds from the government amounting to Rp6.7 trillion. Gunawan Setiadi, one of the customers, said that there were at least two big cases involving Bank Century, namely embezzlement of customers' deposits by its management and misappropriation of the government's bailout funds.

        He said it was hard to understand that after receiving an injection of Rp6.7 trillion from the government, the bank could still not return the money of its small depositors totaling only Rp1.4 trillion.

        On the previous day, a delegation of several civil society organizations came to the KPK office to submit a report on corruption in the bailout of Bank Century. Addie Massardi, the delegation's spokesman, said the report was received by the KPK's public complaints section.

        "The Bank Century case is the source of the acute law enforcement-related problems the nation is facing now," Addie Massardi told reporters. ***4*** (T.A014/A/HAJM/19:30/a014) (T.A014/A/A014/A/A014) 13-11-2009 19:33:24