Lobster Larva Export Bribery Believed to have Used Bank Guarantees

Modes of corruption are getting more sophisticated. In the case of lobster larva export licenses, bank guarantees are believed to have been used to cover up graft.

Kompas/Heru Sri Kumoro

Officers bring Rp. 52.3 billion confiscated from a bank in the case of alleged bribery related to the export license for lobster or fries at the Ministry of Marine Affairs and Fisheries (KKP) at the Corruption Eradication Commission (KPK) Building, Jakarta, Monday (15/3/2021 ).

JAKARTA, KOMPAS — The Corruption Eradication Commission (KPK) is investigating allegations of further bribery in the determination of lobster larva export permits by the Marine Affairs and Fisheries Ministry. The investigation involves former marine affairs and fisheries minister Edhy Prabowo. Furthermore, about 40 companies are suspected of being involved. The KPK has also revealed a new method of bribery in this case, namely that bribes were allegedly given in the form of bank guarantees.

On Monday (15/3/2021), KPK investigators confiscated Rp 52.3 billion in cash from Bank Negara Indonesia (BNI) 46 Gambir Branch, Jakarta, in connection with the lobster larva export permit corruption case. The money was believed to have come from exporters who had received permission from the Marine Affairs and Fisheries Ministry to export lobster larvae in 2020.

KPK acting spokesman Ali Fikri said Edhy Prabowo allegedly ordered the Marine Affairs and Fisheries Ministry’s secretary general to place an order for exporters to submit the bank guarantee.

So the allegation is that this is a form of commitment in the implementation of lobster larva exports at the Marine Affairs and Fisheries Ministry

"The suspect, EP [Edhy Prabowo], ordered the secretary general of the Marine Affairs and Fisheries Ministry, then the head of the BKIPM (Fish Quarantine, Quality Control and Safety of Fishery Products Agency), then again the head of the Office of the Jakarta I Soekarno Hatta Quarantine Center [to place the order] so that each exporter submitted the bank guarantee, which was deposited in BNI," said Ali.

Based on preliminary information, more than 40 companies have deposited bank guarantees with BNI 46.

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KPK investigators believe there is no regulation that requires exporters to hand over bank guarantees. "So the allegation is that this is a form of commitment in the implementation of lobster larva exports at the Marine Affairs and Fisheries Ministry," Ali added.

Kompas/Heru Sri Kumoro

Former Minister of Maritime Affairs and Fisheries Edhy Prabowo arrived at the Corruption Eradication Commission (KPK) building to be examined as a suspect in a corruption case related to the lobster larva export permit at the KPK building, Jakarta, Friday (22/1/2021).

The KPK will question witnesses and examine other relevant evidence to develop its case. Ali declined to say whether the secretary general of the Marine Affairs and Fisheries Ministry, Antam Novambar, was under investigation.

"There is a time limit; in 2 to 3 more weeks [the investigation] has to be complete. Further developments will be disclosed, including what witnesses will be summoned in connection to the evidence," said Ali.

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In mid-December 2020, after the KPK began investigating export permit graft at the end of November, the Marine Affairs and Fisheries Ministry revealed that only eight of the 65 exporting companies were eligible to export lobster larvae, based on the evaluation results of the exporters. There were indications that the companies had not met the requirements for cultivation as stipulated in the Marine Affairs and Fisheries Ministry Regulation No. 12/2020 (Kompas, 19/12/2021).

The confiscation of Rp 52.3 billion added to the long list of assets that the KPK had seized in connection with the bribery case. Previously, the KPK confiscated assets totaling around Rp 37.6 billion. With an additional Rp 52.3 billion, the total confiscated asset value is Rp 89.9 billion.

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So far, the KPK has named seven people suspects. Apart from Edhy, five people were named suspects for allegedly receiving bribes and one for allegedly giving bribes, namely Suharjito, the director of PT Dua Putra Perkasa. In total, KPK investigators have examined 115 witnesses.

KOMPAS/RUNIK SRI ASTUTI

Illustration. Sidoarjo Police show 33,000 baby lobster that will be smuggled into Vietnam, Wednesday (10/3/2021)

New mode

Bribery through bank guarantees is a newly discovered mode of corruption. At the beginning of the case in November 2020, Edhy was suspected of receiving bribes from a number of companies that had received lobster larva export licenses, the delivery of which was made through PT ACK, the only cargo service provider appointed to export lobster larva. The total amount of bribes was believed to be Rp 9.8 billion.

Money that was deposited in PT ACK\'s account was then moved to the accounts of the owners of PT ACK’s account, namely Ahmad Bahtiar and Amri. Furthermore, Ahmad allegedly transferred money to the account of Edhy\'s wife, Ainul, in the amount of Rp 3.4 billion, which, among other things, was used for Edhy\'s needs (Kompas, 26/11/2020).

A researcher at the Gadjah Mada University Anti-Corruption Research Center, Zaenur Rohman, suspected that bank guarantees had become a new method of disguising bribery. He said corruption was becoming increasingly sophisticated, both in terms of disguising the transactions and disguising the proceeds of crime.

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Therefore, it is important for law enforcement to continue to improve its capabilities in order to uncover increasingly sophisticated modes of corruption.

Indonesian Anti-Corruption Society (MAKI) coordinator Boyamin Saiman asked the KPK not to stop with the confiscation of Rp 52.3 billion and the seven people who had been named suspects. The KPK, he said, must also investigate the alleged involvement of the companies that had deposited the bank guarantee. This is important considering that many exporters did not actually qualify for the exports.

With regard to the latest developments in the KPK investigation, Edhy Prabowo\'s lawyer, Soesilo Aribowo, said Edhy once told him that there was non-tax state revenue (PNBP) that had entered the bank guarantee because the regulations did not yet exist. "However, I do not know for sure whether it was part of a bribe or money from a PNBP bank guarantee. I can\'t answer yet, I\'ll ask [Edhy] first,” said Soesilo.

Pak Edhy doesn\'t know which companies [deposited guarantees]. Regarding the ACK, maybe he was only briefly reported, but I will ask [Edhy] later.

Edhy, according to Soesilo, also did not know about the 40 companies that had deposited guarantees. This, he said, was too technical and was part of the work of the due diligence team on lobster cultivation business permits. "Pak Edhy doesn\'t know which companies [deposited guarantees]. Regarding the ACK, maybe he was only briefly reported, but I will ask [Edhy] later,” said Soesilo.

A spokesperson for the Marine Affairs and Fisheries Minister, Wahyu Muryadi, said he did not know anything about the bank guarantee issue. "Wow, that was the business of the previous minister, [Edhy Prabowo]. We don\'t know anything.”

Antam Novambar did not answer when asked for comment.

This article was translated by Hyginus Hardoyo