Monday, January 22, 2024

Political funding: The elephant in the room


In the midst of the 1MDB scandal, Dato Najib invited opposition to seat together with the government side to address the issue of political funding. They already had him under the bag. Agreeing would actually be giving him breathing space. Nothing happened. 

The issue of political funding came up immediately upon Anwar being sworn in as Prime Minister in November 2022. The relationship between business and politics is seen a source of illicit political fund in exchange for business monopoly. The approach advocated was for a Political Funding Act to ensure transparency and legitimacy in financing of political campaign. 

Politics need money. To push law to regulate is easy, but the solution to the need of political parties to finance campaign without the trade-off in principle was never offered. Say, if no unregulated private political financing allowed, is the public willing to allow public fund to be used? 

Do Malaysians have a strong sense of advocacy on issues and willing to donate to candidates voicing their raison d'etre? Perhaps, not quite.

The same dilemma facing the Indonesian Presidential candidates to address this real source of corruption. Leading candidate Probowo is comfortable the way it is. He will not likely speak up. Other candidates Anies Baswedan and Ganjar badly need the donations. They are silent too. 

The Star report below: 

Murky depths far from transparent

The Star Monday, 22 Jan 2024

INDONESIA Presidential candidates have outlined their plans to tackle corruption, but activists and analysts say these campaign trail promises ahead of the Feb 14 polls are ineffective in rooting out deep-seated graft.

The three presidential candidates – former Jakarta governor Anies Baswedan, Defence Minister Prabowo Subianto and former Central Java governor Ganjar Pranowo – proposed their ideas on Jan 17 at an event hosted by the Corruption Eradication Commission (KPK).

These ranged from raising the salaries of public officials, to revising laws to restore the KPK’s powers, to adopting digitalisation for financial transactions.

But analysts pointed out that the candidates failed to address political corruption, which they say is endemic in Indonesia.

Transparency International Indonesia researcher Alvin Nicola said political corruption, especially relating to how political parties are governed and financed, is the biggest issue that remains unresolved.

“Political financing has been ignored, even though it serves as an entry point to determine how far policies can benefit the public as largely as possible,” he said.

“Unfortunately, the candidates do not seem to take the issue of conflicts of interests seriously, and give assurance to the public that the campaign funding from donations will not affect them when elected, such as when deciding on who will fill the Cabinet or when issuing policies.”

Adnan Topan Husodo, director of Banten-based think-tank Anti-Corruption Lab, said political corruption and corruption in the judicial system remain the most common forms of graft in the country. 

“Politics in Indonesia is expensive, complex and opaque... but no presidential candidate has proposed reforms in the political field.”

Reforms, he added, should include making political and campaign funding transparent and accountable.

Indonesia fares poorly on corruption rankings, sliding four spots to 110th out of 180 countries surveyed by Transparency International in 2022. Neighbours Singapore and Malaysia ranked as the fifth and 61st least corrupt countries, respectively, in the same survey.

Between 2018 and 2023, a total of six ministers and one deputy minister in the Cabinet led by President Joko Widodo were jailed for or charged with graft.

Meanwhile, in November 2023, KPK chairman Firli Bahuri was accused of extorting money from Syahrul Yasin Limpo, a former agriculture minister and politician from the NasDem party, who had been arrested earlier for corruption.

Anti-graft activists and experts say Indonesia’s fight against corruption has regressed in the past few years, largely because the amendment of its anti-corruption law in 2019 eroded the KPK’s powers.

This was seen as a systematic effort to weaken the agency, which had stepped on too many corrupt officials’ toes.

The changes included establishing a supervisory council that decides on the agency’s wiretapping, searches and arrests.

KPK employees, including investigators and prosecutors handling important cases, were treated as civil servants who could be conveniently reassigned to other agencies to obstruct justice, critics have said.

Adnan said the first condition before carrying out reforms in other sectors is to strengthen the anti-corruption agency and ensure its independence.

“If the KPK is not independent, it will not be brave enough to tackle political corruption cases,” he said.

He added that key reforms in the judicial system can be done to limit the discretion of law enforcers by establishing a check and balance mechanism and strengthening control over them by an independent body.

Both Anies and Ganjar mentioned the KPK’s dwindling authority at the Jan 17 event.

“We want to restore the KPK’s legal authority, and this means revising the KPK law,” Anies said.

Ganjar called for the return of “full authority” to the graft buster to ensure its independence.

Front runner Prabowo proposed improving the welfare of high-ranking officials, such as judges, ministers and military commanders, to disincentivise graft.

“We need to enhance the quality of life and increase the salary of all state officials,” he said.

“We are capable (of doing that). I have made a calculation with my expert team. Indonesia is a rich, not a poor, nation.”

A salary hike, in Adnan’s view, would be effective in addressing petty corruption among low-ranking officials, but not systemic graft.

“Grand corruption and political corruption won’t be solved by a pay rise,” he said.

Dr Zainal Arifin Mochtar, a law expert from Yogyakarta-based Gadjah Mada University, said: “Raising salaries can only address corruption by need and cannot tackle corruption by greed.”

Enhancing the KPK, the Attorney-General’s Office and the police, not only institutionally, but also in terms of coordination and work mechanisms, will be necessary to improve Indonesia’s efforts to combat corruption and address its dwindling corruption perception index, he added. — The Straits Times/ANN

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The same problems beseiged Anwar. His own party member advocated to expedite political funding law. Last heard of it was May last year. Now as silence as Indonesian debate on corruption.

If he is serious in combatting corruption, allocate serious budget in the area of corruption prevention and fund of MACC's investigation operation. The rate MACC is in pursuit of many big names require a substantial allocation. 

There were several suggestions put up to make MACC truly independent such as placing it under Parliament or recently suggested by incoming Agong to be placed under Istana Negara. It will be independent but it will pose administrative problems. 

Under Parliament, it will be a case of many talk but no person to take up the responsibility and champion the corruption cause. While under the direct auspices of Agong, it can be rather stiffling. Perhaps, the low laying fruit would be to accord the prestige of Royal Commission or the Malay term "Suruhanjaya Di Raja" to MACC in the same status as police and customs. 

The problem with independence is the administrative efficiency and budgetary needs. It is better to be  under the civil service structure. Its downside is MACC is still answerable to the Chief Secretary, thus the KSU and KSN will be literally untouched. 

The most effective way is for MACC to have their own Service Commission or in-house JPA. The PTDs will oppose it, but it is the right thing to do. 

Where there is a will, there is a way. 

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