Jakarta – Amid ongoing tax reform within the Finance Ministry's directorate general for taxation, another debacle has shaken the office's credibility after the Attorney General's Office (AGO) named two of its officials as graft suspects in a software procurement project scandal on Thursday.
The AGO said the officials, identified as B and PS, who were committee members in the procurement project of a taxation information system in 2006, in which they allegedly took part in the misappropriation of Rp 12 billion (US$1.34 million) in state budget funds.
Directorate general spokesperson Dedi Rudaedi said the case was discouraging. "However, we take the case as a lesson to learn from and also as motivation to improve services," he said.
Dedi stressed that his office supported the case investigation, saying that he hoped all details would be clearly disclosed.
The AGO had previously questioned the directorate general's commitment in eradicating corruption, saying that the office "did not show good intentions" and "was too slow to respond to investigators' requests for supporting documents".
AGO investigative director for the special crimes division, Arnold Angkouw said that the directorate general refused to provide documents related to the allegations.
The AGO, which raided the office on Thursday, said that several related documents had been moved to the West Jakarta Tax Office.
"We did not attempt to hide any documents from the investigators," Dedi said. "We are actually rearranging our archives and the process has not yet been completed."
Dedi said that his office would impose fair punishments if the two officials were found guilty. "We are following the investigative process," he said.
Allegations of corrupt practices among tax officials are not new, despite the launch of a series of tax reforms in 2005. The reforms, initiated under the leadership of director general Hadi Purnomo, uphold several agendas, including corruption eradication.
In February, judges at the South Jakarta District Court sentenced former tax officer Bahasyim Assifie to 10 years in prison for corruption. Bahasyim, who filed an appeal in an attempt to plea for a sentence reduction, received an additional two years instead.
Judges found Bahasyim guilty of violating the 2001 Law on Corruption and the 2003 Law on Money Laundering.
Bahasyim was unable to prove the source of funds amounting to more than Rp 60 billion and $681,487 that he had channeled to several accounts belonging to his wife and children.
At the same time, judges in the same court handed down seven years imprisonment to tax officer Gayus Tambunan in May. Similar to Bahasyim, Gayus, who filed an appeal in an attempt to receive a lighter sentence, was given an additional three years.
Gayus was given a 10-year prison term and was asked to pay Rp 300 million in fines.
Gayus was found guilty of bribing judge Muhtadi Asnun, police officer Comr. Arafat Enanie, conspiring with businessman Andi Kosasih to create a fake agreement to unfreeze Gayus' Rp 28 billion bank account and issuing inaccurate judgments on tax objections filed by PT Surya Alam Tunggal. (lfr)