EX-RELIGION MINISTER CONVICTED ON CORRUPTION

C O N F I D E N T I A L SECTION 01 OF 02 JAKARTA 001652

SIPDIS

SIPDIS

E.O. 12958: DECL: 02/08/2014
TAGS: PGOV KISL ECON ID
SUBJECT: EX-RELIGION MINISTER CONVICTED ON CORRUPTION
CHARGES


Classified By: Political Officer John Rath. Reason: 1.4(d).


1. (C) Summary: The GOI's anti-corruption campaign scored
its biggest success to date with the February 7 conviction of
former Minister of Religion Said Agil Hussein Al Munawar and
an aide for embezzling nearly USD 71 million in funds
earmarked to support Indonesians perform the Hajj pilgrimage
to Saudi Arabia. Agil, who served in the Megawati
Sukarnoputri administration, was sentenced to a jail term of
five years and ordered to pay a fine and some restitution.
Anecdotal reaction to the conviction was generally positive,
though some of Agil's former colleagues felt that he had been
made a scapegoat. With no political juice of his own and
accused of charges that appall even the most
ethically-challenged members of Indonesian society, Agil was
an easy high-profile trophy for GOI anti-corruption
headhunters. A clearer test of SBY's anti-corruption
campaign will come during the ongoing trial of well-connected
banker Eddy Nelloe. End Summary.

Raiding the Hajj Trust Fund
--------------


2. (SBU) An Islamic scholar from the Nahdlatul Ulama (NU)
organization, Agil served as Minister of Religion from
2001-2004. His arrest last year on charges of skimming about
USD 71 million from a GOI Department of Religion-controlled
trust fund drew headlines as evidence of the Yudhoyono
government's intent to crack down on corruption at all levels
of public administration. The trust fund in question was
established in the early 1990s by one of Agil's predecessors
with the stated goal of achieving economies of scale to
facilitate a reasonably-priced Hajj pilgrimage for
Indonesia's annual quota of 200,000 pilgrims. During the
Agil years, his department provided an all-inclusive Hajj
package for approximately USD 2500, which was paid directly
into the trust fund. Numerous contacts have told us that GOI
misuse of the trust fund was an open secret for many years
even prior to Agil's tenure.


3. (SBU) At trial, Agil acknowledged diversion of trust fund
money but denied that he had enriched himself or his family.
Rather, he argued that the bulk of the diverted funds was
used to pay for various off-budget Department of Religion
projects and salary enhancements to Department of Religion
personnel, with a smaller but still significant sum paid out
as gratuities to a long list of GOI legislators, auditors,
and bureaucrats. Although prosecutors asked for a ten-year
sentence, the Central Jakarta District Court handed down a
five-year jail term that can be enhanced if Agil fails to pay
approximately USD 250,000 in fines and restitution. A senior
Agil aide received a slightly lesser sentence: both stated
after the court decision that they planned to appeal.

Reaction
--------------


4. (C) Anecdotal soundings reveal a mostly positive reaction
to Agil's conviction as a sign that the Yudhoyono government
is serious about it's anti-corruption push. For example,
Sudibyo Marcus, an academic and senior leader of Muhammadiyah
(the rival Muslim organization of Agil's NU) expressed
satisfaction over the conviction. Expressing an opinion
commonly associated with the Agil case, he noted that the
crime of stealing money from people who are performing an
obligatory religious rite (in many cases the money
represented a lifetime's savings) is particularly
unconscionable and demands a stern punishment. Muslim
educator and opinion leader Azyumardi Azra agreed on the
importance of Agil's conviction as an example to other GOI
officials. Azra opined that Agil, who is an adjunct
professor at Azra's State Islamic University, may be given an
even harsher sentence by an appellate court.


5. (C) Some of Agil's NU colleagues and former Department of
Religion subordinates expressed concerns that Agil was merely
a convenient scapegoat for a government eager for a
high-level corruption conviction but unwilling to pursue
bigger fish who have better political connections. NU Deputy
Chair Masdar Mas'udi told us that NU would decline to comment
on the case until Agil's appeal had been adjudicated.
However, he and former Department of Religion official Musdah
Mulia told us that they personally question why the GOI has
made no effort to investigate Agil's claim that he shared
embezzled funds with numerous active GOI officials and
legislators. They also claimed that Agil's trust fund use

JAKARTA 00001652 002 OF 002


was no different than that of past ministers, who have not
been investigated or charged.

Comment
--------------


6. (C) Agil's conviction counts as an important victory for
SBY's anti-corruption campaign. However, Agil presented a
relatively easy and appealing target because he is a career
academic with few political patrons, and he stood accused of
offenses over which even the most jaded and venal Indonesians
can work up a righteous lather of indignation. A clearer
test of SBY's anti-corruption campaign will come during the
ongoing trial of former Bank Mandiri President Eddy Nelloe,
who has much stronger political ties to Indonesia's business
and government elite.

PASCOE