Indonesia drops charges against anti-graft officials
Posted: 01 December 2009 2104 hrs

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JAKARTA - Indonesia's attorney general on Tuesday dropped allegedly bogus charges against two senior anti-graft investigators, ending a scandal that has gripped the nation for months.

But as one case closed, another looked set to open, after parliament agreed to launch a probe into a 710-million-US-dollar bailout of a troubled bank that allegedly helped political allies of President Susilo Bambang Yudhoyono.

Corruption Eradication Commission (KPK) investigators Chandra Hamzah and Bibit Samad Riyanto were arrested in October for alleged graft and abuse of power as they pursued a corruption case against a local businessman.

But they were released less than a week later when KPK wiretap recordings of police, prosecutors and the brother of the businessman revealed an alleged conspiracy to frame the two anti-graft officials and cripple the KPK.

The revelations sparked protests and widespread public disgust at the workings of what Yudhoyono called the "court mafia", the network of corrupt police, prosecutors and judges that infects every level of the judicial system.

Attorney General's Office spokesman Didiek Darmanto said the charges against the KPK deputy chairmen had finally been dropped, in line with recommendations from a "fact-finding team" appointed by Yudhoyono to look into the affair.

"The case of Chandra and Bibit has been dropped," he said, without explaining.

Attorney General's Office deputy for special crimes Marwan Effendi said on Monday the charges were "legally unworthy to be brought to the court" and would only sow discord between key law-enforcement agencies.

Yudhoyono has rejected calls for the sacking of police chief Bambang Hendarso Danuri and Attorney General Hendarman Supandji over the affair, although a senior detective has been replaced.

He is likely to face more pressure in coming months as lawmakers probe allegations of corruption linked to the bailout last year of Bank Century.

In a vote, 503 out of 560 legislators agreed to launch an inquiry into the bailout after the country's top auditor found strong indications of "violations" and recommended a full investigation.

Vice-President Boediono and Finance Minister Sri Mulyani Indrawati -- two of the most trusted technocrats in Yudhoyono's Cabinet -- are in the firing line for their role in approving the 6.7-trillion-rupiah bailout.

All the senior officials involved insisted the rescue fund -- which was 10 times bigger than initially recommended -- was necessary to stave off economic failure amid last year's global financial turmoil.

However chief auditor Poernomo last month said 2.8 trillion rupiah injected into the bank after 18 December, 2008 had "no legal basis".

Yudhoyono has also strongly denied that some of the money was channelled into his successful re-election campaign earlier this year through politically connected Bank Century depositors.

"Hopefully this parliamentary inquiry can reveal where the Bank Century funds have gone," said opposition lawmaker Gayus Lumbuun, of the Democratic Party of Struggle.

Bank Danamon economist Helmi Arman said the inquiry increased "political risk" in Indonesia, Southeast Asia's biggest economy.

"This should be closely monitored, as we do not know how far the case could implicate the current VP and finance minister, who are two central economic policymakers in the current administration," he said.

-AFP/ir