Indonesian leader orders corruption probes
President Susilo Bambang Yudhoyono sought to bolster his anti-corruption
credentials by ordering Indonesia authorities to look into dozens of
companies allegedly linked to a tax official who amassed millions of dollars
in bribes.

The dealings of Gayus Tambunan, infamously photographed at a tennis
tournament on the resort island of Bali after bribing his way out of a
Jakarta jail, have enraged Indonesians and sent Mr Yudhoyono’s support
plummeting.

In court hearings, Mr Tambunan admitted paying prison guards $40,000 to
leave his cell at least 68 times. He also obtained a fake passport from
immigration officials and flew to Singapore, China and Macao when he was
supposed to be behind bars.

Despite a modest civil servant’s salary of roughly $1,000 a month, Mr
Tambunan lived in a sprawling house with a private pool, tennis court and
jogging track. Among assets seized by officials were gold bars and more than
$3m in cash.

The revelations have highlighted the extent of corruption still crippling
Indonesia’s government institutions more than 12 years after the fall of the
military dictatorship of Suharto, the late president.

In an apparent effort to restore his public image, Mr Yudhoyono ordered law
enforcement agencies to complete inquiries promptly and recover the state
assets allegedly stolen by Mr Tambunan.

“If there is enough evidence of alleged wrongdoing by 149 companies, they
should be formally investigated,” Mr Yudhoyono said in a televised press
conference, some of his strongest comments yet on the case. He outlined a
12-point plan to counter what he has dubbed the “tax mafia”, including a
greater role for the KPK.

The names of 149 companies, including three linked to the powerful Bakrie
family, have come up in court hearings. The Bakries have denied claims by Mr
Tambunan that they paid him millions of dollars in bribes to evade taxes.

Indonesia regularly ranks among the most corrupt countries in the world,
with law enforcement and the judiciary seen as the weakest institutions.
Corruption Watch Indonesia estimates at least $1.4bn in state assets has
been lost between 2002 and 2008.

The KPK has successfully prosecuted dozens of politicians and government
officials, but has been largely ineffective in politically sensitive cases.

In 2010, the agency was targeted by political opponents, including the
now-retired deputy attorney-general and chief police investigator, who
launched bogus allegations against two of its five commissioners.

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