KPK Names Former Chairman of Supreme Audit Board Corruptions Suspect

Jakarta (Antara) - The Corruption Eradication Commission (KPK) has named former chairman of the Supreme Audit Board (BPK) Hadi Poernomo a corruption suspect. Hadi was charged with abuse of power when he was taxation director general in 2002-2004 causing a loss of around Rp375 billion to the state. Hadi was named suspect on his 67 birthday on Monday when he retired as civil servant from his last position as BPK chairman. Hadi favored Bank Central Asia (BCA) by accepting the bank's objection to corporate tax in the 1999-2003 period resulting in a loss to state revenue, KPK chairman Abraham Samad said on Monday. Hadi is facing a jail term of up to 20 years with a maximum fine of Rp1 billion if found guilty by court. On July 17, 2003, BCA sent a letter to the Income Tax Directorate (PPH) stating its objection to imposition of tax on its non performing loan of Rp5.7 trillion. The PPH director recommended rejection of the BCA's objection, but Hadi Poernomo passed order to the PPH director to change his recommendation in favor of BCA on July 18, 2004. Hadi Poernomo then issued a decision freeing BCA of tax obligation on its NPL. "The state should received at least Rp375 billion in tax revenues," Deputy Chairman of KPK Bambang Widjojanto said. (*)