The Jakarta Post - September 26, 2007
Mas Achmad Santosa and Nenad Bago, Jakarta
During his visit to the U.S. to attend the UN General Assembly this week, President Susilo Bambang Yudhoyono is slated to meet World Bank President Robert Zoellick to discuss the joint World Bank-UNODC Stolen Asset Recovery (StAR) Initiative Report.
This report ranked former president Soeharto at the top of its list of the most corrupt political leaders. Soeharto's ill-gotten money is estimated at between US$15 billion and $35 billion, which he allegedly embezzled during his tenure from 1967 to 1998.
The essence of the StAR Initiative, prepared by the United Nations Office on Drugs and Crime (UNODC) and the World Bank (WB), is to introduce an action plan that emphasizes international and global cooperation to help victim countries (i.e., developing countries) recover assets stolen and hidden by former political leaders and their associates.
StAR also underlines the critical importance of cooperation between developed countries, especially the financial center jurisdictions (which often serve as havens for assets stolen by former political leaders), and the developing countries from where assets were stolen.
Learning from countries such as Nigeria, Peru and the Philippines, which have enjoyed some recent successes in the recovery of assets stolen by their former political leaders, Sani Abacha, Alberto Fujimori and Ferdinand Marcos, respectively, it is clear that the asset recovery process is time-consuming -- it took Nigeria 6-7 years, Peru 4 years and the Philippines 18 years -- and costly due to expensive legal and investigation fees.
There have been already been some attempts to recover assets allegedly stolen by Soeharto. They include a move by President BJ Habibie to send then attorney general Andi Ghalib and justice minister Muladi to Switzerland back in 1999. The pair returned home empty handed. The government has intervened in the case involving Soeharto's son Tommy and Paribas Bank in Guernsey, which is currently underway, and has filed a civil suit in the Jakarta District Court aimed at getting back the assets of foundations established by Soeharto.
The efforts of post-Soeharto governments to recover stolen assets needs to be translated into a clear national strategy with a clear action plan that includes international support.
Therefore, the result of the meeting between SBY and the World Bank and UN agencies this week will reveal the extent of the current government's political will.
There are two main reasons why SBY should show strong political will in recovering the assets allegedly stolen by Soeharto. First, it will be a burden on the nation that will have far-reaching moral and historical consequences if we don't overcome the obstacles that are impeding the process of returning the assets allegedly stolen by Soeharto. Second, two influential international reports (TI's Corruption Perception Index and the StAR Initiative report) that have named Indonesia as one of the most corrupt countries in the world, and Soeharto as the most corrupt political leader in the world have implications for national pride and Indonesia's international standing.
Indonesia needs a clear strategy for asset recovery. Under the StAR initiative, Indonesia should contact the governments that have successfully recovered stolen assets, including Nigeria, Peru and the Philippines, to learn about their experiences.
Generally, as StAR points out, little can be achieved without the effective cooperation and good will of the countries where proceeds of corruption are hidden. Jurisdictions where stolen assets are hidden, often in developed countries, may not be responsive to requests for legal assistance.
While the entering into force of the United Nations Convention against Corruption (UNCAC) is a big step forward, it is important to realize that half of the G-8 countries have yet to ratify it. Even when the conditions are right for pursuing asset recovery, some developed countries may not cooperate as they do not trust the requesting country, lack confidence in their legal systems, or for political reasons.
Therefore, StAR is relevant to Indonesia in both the short and long terms. In the short term, StAR can put pressure on countries where assets are hidden to seriously engage in the asset recovery process. StAR can also provide support to Indonesia through financial and technical assistance for its own asset recovery efforts. In the longer term, StAR can assist Indonesia to strengthen its legal and public financial management systems by supporting initiatives that will lead to good governance in these areas.
Indonesia also needs to show everyone, at home and abroad, that it intends to use the recovered assets in a transparent and accountable manner so as to support domestic programs aimed at alleviating widespread poverty.
The writers are legal reform and anticorruption analysts.
Mas Achmad Santosa and Nenad Bago, Jakarta
During his visit to the U.S. to attend the UN General Assembly this week, President Susilo Bambang Yudhoyono is slated to meet World Bank President Robert Zoellick to discuss the joint World Bank-UNODC Stolen Asset Recovery (StAR) Initiative Report.
This report ranked former president Soeharto at the top of its list of the most corrupt political leaders. Soeharto's ill-gotten money is estimated at between US$15 billion and $35 billion, which he allegedly embezzled during his tenure from 1967 to 1998.
The essence of the StAR Initiative, prepared by the United Nations Office on Drugs and Crime (UNODC) and the World Bank (WB), is to introduce an action plan that emphasizes international and global cooperation to help victim countries (i.e., developing countries) recover assets stolen and hidden by former political leaders and their associates.
StAR also underlines the critical importance of cooperation between developed countries, especially the financial center jurisdictions (which often serve as havens for assets stolen by former political leaders), and the developing countries from where assets were stolen.
Learning from countries such as Nigeria, Peru and the Philippines, which have enjoyed some recent successes in the recovery of assets stolen by their former political leaders, Sani Abacha, Alberto Fujimori and Ferdinand Marcos, respectively, it is clear that the asset recovery process is time-consuming -- it took Nigeria 6-7 years, Peru 4 years and the Philippines 18 years -- and costly due to expensive legal and investigation fees.
There have been already been some attempts to recover assets allegedly stolen by Soeharto. They include a move by President BJ Habibie to send then attorney general Andi Ghalib and justice minister Muladi to Switzerland back in 1999. The pair returned home empty handed. The government has intervened in the case involving Soeharto's son Tommy and Paribas Bank in Guernsey, which is currently underway, and has filed a civil suit in the Jakarta District Court aimed at getting back the assets of foundations established by Soeharto.
The efforts of post-Soeharto governments to recover stolen assets needs to be translated into a clear national strategy with a clear action plan that includes international support.
Therefore, the result of the meeting between SBY and the World Bank and UN agencies this week will reveal the extent of the current government's political will.
There are two main reasons why SBY should show strong political will in recovering the assets allegedly stolen by Soeharto. First, it will be a burden on the nation that will have far-reaching moral and historical consequences if we don't overcome the obstacles that are impeding the process of returning the assets allegedly stolen by Soeharto. Second, two influential international reports (TI's Corruption Perception Index and the StAR Initiative report) that have named Indonesia as one of the most corrupt countries in the world, and Soeharto as the most corrupt political leader in the world have implications for national pride and Indonesia's international standing.
Indonesia needs a clear strategy for asset recovery. Under the StAR initiative, Indonesia should contact the governments that have successfully recovered stolen assets, including Nigeria, Peru and the Philippines, to learn about their experiences.
Generally, as StAR points out, little can be achieved without the effective cooperation and good will of the countries where proceeds of corruption are hidden. Jurisdictions where stolen assets are hidden, often in developed countries, may not be responsive to requests for legal assistance.
While the entering into force of the United Nations Convention against Corruption (UNCAC) is a big step forward, it is important to realize that half of the G-8 countries have yet to ratify it. Even when the conditions are right for pursuing asset recovery, some developed countries may not cooperate as they do not trust the requesting country, lack confidence in their legal systems, or for political reasons.
Therefore, StAR is relevant to Indonesia in both the short and long terms. In the short term, StAR can put pressure on countries where assets are hidden to seriously engage in the asset recovery process. StAR can also provide support to Indonesia through financial and technical assistance for its own asset recovery efforts. In the longer term, StAR can assist Indonesia to strengthen its legal and public financial management systems by supporting initiatives that will lead to good governance in these areas.
Indonesia also needs to show everyone, at home and abroad, that it intends to use the recovered assets in a transparent and accountable manner so as to support domestic programs aimed at alleviating widespread poverty.
The writers are legal reform and anticorruption analysts.
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