Thurs, May 22th, 2014

http://www.thejakartapost.com/news/2014/05/22/sutan-faces-money-laundering-charges.html

The Financial Transaction Reports and Analysis Center (PPATK) said Wednesday that it had completed its investigation into the finances of graft suspect and senior Democratic Party lawmaker Sutan Bhatoegana as requested by the Corruption Eradication Commission (KPK).

“The results of the investigation have been sent to the KPK for follow-up,” PPATK deputy chairman Agus Santoso told The Jakarta Post on Wednesday.

Sutan, who serves as chairman of House of Representatives Commission VII overseeing energy and natural mineral resources, was named a graft suspect on May 14 in a bribery case connected to House deliberations of the Energy and Mineral Resources Ministry’s budget.

The KPK alleges that Sutan, who is also a founding member of the Democratic Party, might have accepted bribes several times from Upstream Oil and Gas Regulatory Special Task Force (SKKMigas), an agency long reported as the ministry’s cash cow, to expedite approval of the ministry’s budget by lawmakers.

Following allegations that Sutan might have laundered bribe money, the KPK requested the PPATK launch a probe into his financial transactions.

Agus confirmed that the PPATK analysis had found indications of criminal activity in Sutan’s financial transactions, but refused to elaborate, adding that the KPK had requested his office begin its investigation of Sutan prior to the lawmaker being named a suspect.

“If the KPK asks the PPATK to audit one’s finances before he is named a graft suspect, but later he is named a suspect, then it is almost certain that his financial transactions also indicate criminal wrongdoing,” Agus said, refusing to elaborate further on the results of the audit because he was prohibited from doing so by law.

According to the PPATK, if the audit concluded that transactions inconsistent with his profile as a state official had occurred, then the KPK would likely move to charge Sutan with money laundering.

Agus additionally said, “From past experience, high-profile graft suspects launder their ill-gotten gains” in order to sever ties with their dirty money.

Separately, KPK chairman Abraham Samad said that the antigraft body would soon question Sutan as a suspect in the case.

“Soon, we will question him,” Abraham said, adding the KPK would not lock up Sutan immediately after questioning, but later after its investigation into him neared completion.

Sutan made headlines last year after graft and money-laundering convict and former SKKMigas head Rudi Rubiandini revealed that the outspoken lawmaker had asked him for cash and goods in exchange for his assistance in approving the budget for the ministry, which oversees SKKMigas.

It has become common practice for state agencies under the supervision of ministries to be used as cash cows.

Rudi said that Sutan had also asked him to pay US$200,000 in “holiday bonuses” for Commission VII lawmakers in 2013.

Also, during Rudi’s trial former SKKMigas deputy for business affairs, Gerhard Marteen Rumeser, revealed that Sutan had asked Rudi to favor a company backed by Sutan for an offshore construction project worth more than $600 million, held by a local unit of US energy giant Chevron.

Gerhard also said that Rudi once told him that SKKMigas “owed” the House $1 million and that Rudi had sought his help in obtaining $500,000 to pay off the “debt”.

Gerhard said Raden Priyono, who then headed former regulator BPMigas, had promised the lawmakers to give them the money. BPMigas was disbanded by the Constitutional Court in November 2012 and later replaced by SKKMigas.

Sutan could not be reached for comment on Wednesday.