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Regional leaders 'use dirty money' to pay off campaign debts

Source
Jakarta Post - April 17, 2012

Agus Maryono, Banyumas – Debts of billions of rupiah to fund political campaigns are being blamed for corruption among regents and mayors across the country, with many owing money to a wealthy property developer who claims to hold the land certificates of a dozen leaders for "collateral".

With their salaries ranging from Rp 10 million (US$1090) to Rp 15 million a month, it would be impossible for a regent or mayor to pay such debts, according to political science expert Ahmad Rofik of Jenderal Soedirman University in Purwokerto.

"It is almost certain that corruption will be the common path taken by regional heads to pay for their debts," Rofik told The Jakarta Post in Banyumas, Central Java, on Monday.

He said that their lack of fear in borrowing money from investors could be seen as an indication that they would play with administration budgets once they were elected. The methods, Rofik said, could range from spending the budget as they wish or by streamlining the approval of a number of projects to particular investors.

Budhi Sarwono, a contractor at a national level popularly known as Win Chin, said that many regents in Central Java borrowed money from him to fund their campaigns. "There are at least 12 of them whose land certificates are still kept here in this house's safe deposit box as collateral," Win Chin recently said at his home in Banjarnegara, Central Java.

He said that, on average, regents borrowed more than Rp 2 billion from him. "Some have paid off the debt. Some have not, although they have been in their posts for five years. Some were not elected, so they cannot pay for their debt," he said.

Win Chin has shown a list naming the regents indebted to him to local media, along with a list of what collateral they provided to him. "How can they create wealth for their people if they themselves are in debt? It's their own fault if they later commit corruption," he said.

The Home Ministry has recently revealed that at least 173 regional leaders across the country were involved in misappropriation of administration budgets between 2004 and 2012. Of them, 70 were found guilty and dismissed from their posts.

The Central Java Corruption, Collusion and Nepotism Eradication and Investigation Committee (KP2KKN) also recently revealed that 23 of the province's 35 regents and mayors were corrupt. The latest alleged case culminated in the arrest of Semarang Mayor Soemarmo by the Corruption Eradication Commission (KPK) in Jakarta.

In West Java, Governor Ahmad Heryawan on Monday handed over a letter dismissing Subang Regent Eep Hidayat, sent from the home minister, to acting regent Ojang Sohandi.

Home Minister Gamawan Fauzi dismissed Eep following his Supreme Court conviction for embezzlement worth Rp 2.5 billion from the regency's 2005-2008 property tax collection fees.

A similar letter dismissing Bekasi Mayor Mochtar Mohammad was also given to acting mayor Rachmat Effendi, after the former was jailed for a variety of corrupt acts totalling Rp 5.5 billion.

"The law obligates both the Bekasi municipal and Subang regency legislative councils to hold plenary sessions to dismiss the heads of their respective regions and propose the installation of the acting mayor and regent as mayor and regent," Ahmad said, after handing over the letters at his office's compound in Bandung.

Responding to Eep's dismissal, Ojang said the appointment of a new regent was the authority of the Subang legislative council. "The letter does not directly appoint me as regent but as acting regent."

[Arya Dipa contributed to this story from Bandung.]

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