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Cablegate: Corruption Update -- Former Envoy Convicted Of

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OO RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #0017/01 0031015
ZNR UUUUU ZZH
O 031015Z JAN 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7552
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS PRIORITY
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RUEHWL/AMEMBASSY WELLINGTON 2217
RUEHPT/AMCONSUL PERTH 0514
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RUEAWJB/DEPT OF JUSTICE WASHDC
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RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 000017

SIPDIS

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E.O. 12958: N/A
TAGS: PGOV KJUS KCOR KMCA ID
SUBJECT: CORRUPTION UPDATE -- FORMER ENVOY CONVICTED OF
GRAFT

REF: A. 07 JAKARTA 3484
B. 07 JAKARTA 3378
C. 07 JAKARTA 3320
D. 07 JAKARTA 3173
E. 07 JAKARTA 2722
F. 07 JAKARTA 2525

JAKARTA 00000017 001.2 OF 002


1. (U) This message was coordinated with Consulate Medan.
It is Sensitive but Unclassified -- Please handle accordingly.

2. (SBU) SUMMARY: In the latest corruption news: the former
Indonesian Ambassador to Malaysia was convicted and sentenced
to prison for overcharging visa applicants; the Attorney
General has disciplined three prosecutors who failed to win a
conviction against an illegal logging kingpin; and, a private
corruption watchdog criticized the GOI's use of closed door
dispute resolution mechanisms in some cases of alleged
corruption. The GOI continues to investigate a potentially
splashy case involving alleged corruption in construction at
Indonesia's embassy in Sinagapore. END SUMMARY.

3. (U) AMBASSADOR CONVICTED: Former Indonesian Ambassador
to Malaysia Hadi Wayarabi was convicted of corruption by the
Anti-Corruption Court on January 2. The Court found Wayarabi
and another embassy official guilty of embezzling USD 1.8
million in excess fees paid by Malaysian visa applicants.
The men were sentenced to two and half years each of prison
time. Hadi could also face up to two additional years in
prison if he fails to repay USD 175,000.

4. (U) PROSECUTORS DISCIPLINED: The Attorney General's
Office announced that three prosecutors involved in the
recent acquittal of illegal logging kingpin Adelin Lis will
be temporarily demoted. Lis' controversial acquittal has
spurred accusations of incompetence and corruption against
police, judges and prosecutors involved in the case (ref B),
but to date only the AGO has taken disciplinary action. The
sanctions are the latest in a series of moves taken by the AG
against prosecutors who fail to perform competently (ref C).
Observers have noted, however, that the demotions--which will
last for one year only--are less severe than the punishment
recommended by the AGO Directorate of Supervision back in
December.

5. (U) A CONTROVERSIAL PRACTICE: An anti-corruption
research group has published a year-end report criticizing
the GOI's use of what the report calls "customary resolution"
of disputes involving corruption allegations against state
officials. The group defines the practice as the informal
resolution of disputes between different government agencies
without recourse to legal means.

6. (U) The report cites three examples in which the practice
was employed during 2007: a dispute between controversial
former minister Yusril Mahendra and the Corruption
Eradication Commission (ref A); allegations of ill-gotten
gains helping to finance presidential campaigns (ref F); and,
a dispute between the Supreme Audit Board and the Supreme
Court over the auditing of case fees paid by plaintiffs (ref
E). All three matters were allegedly resolved after the
disputants were summoned to closed-door high-level meetings
and any legal proceedings under way at the time ceased from
that point. The report argues that disputes involving
corruption allegations are best resolved through the legal
system and that the legal process should be allowed to run
its course.

7. (SBU) A SPLASHIER CASE?: The Wayarabi decision involving
the former envoy to Malaysia represents another success for
the Corruption Eradication Commission--which investigated and

JAKARTA 00000017 002.2 OF 002


prosecuted the case--and the Anti-Corruption Court. In the
meantime, allegations of corruption have also been levied
against other high-level Foreign Ministry
officials--including current Indonesia Ambassador to the U.S.
Sudjadnan Parnohadiningrat--who were involved in a
construction project involving the Indonesian Embassy in
Singapore (see ref d). The government has not yet concluded
its investigation into what could turn out to be a very
splashy case.

HUME

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