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Indonesia court jails former trade minister for 4.5 years in sugar graft case

Indonesia court jails former trade minister for 4.5 years in sugar graft case

Reuters3 days ago
JAKARTA, July 18 (Reuters) - An Indonesian court on Friday sentenced a former trade minister to 4.5 years in jail for improperly granting sugar import permits that authorities said had caused nearly 600 billion rupiah ($36.84 million) in state losses.
Thomas Trikasih Lembong served as trade minister in 2015 and 2016 under President Joko "Jokowi" Widodo. Once seen as Jokowi's close aide, Lembong turned into one of the government's staunchest critics after leaving office.
Judges at the corruption court in the capital Jakarta said Lembong, as minister, was guilty of improperly granting import permits for sugar to private companies when the Southeast Asian country had a surplus of sugar.
Indonesia's sugar output in 2015 was 2.49 million metric tons, while consumption was 2.12 million.
In last year's presidential election, Lembong was the campaign manager for candidate Anies Baswedan. The election was won in a landslide by Prabowo Subianto, whom Jokowi backed.
Lembong, who was arrested days after Prabowo's inauguration last year, had claimed in court that his prosecution was due to his involvement in the opposition camp, local media reported.
Prosecutors had denied his arrest was politically motivated.
"The defendant was proven legally and convincingly to be guilty of having committed a corruption act," Judge Purwanto S. Abdullah said, to jeers from the crowd.
Before handing the sentence, the judges had argued the import permits did not go through the proper procedures of consulting with other state bodies and that he had prioritised "capitalistic" interests over social justice.
However, the judges said he did not enrich himself, leading to a shorter sentence than the seven years prosecutors had demanded. Prosecutors said Lembong had enriched the private companies.
Holding up his handcuffed hands, Lembong told reporters after the sentencing that he would consider whether or not to appeal, saying judges had ignored his defence team. His lawyer Ari Yusuf Amir did not immediately respond to a Reuters request for comment on Friday.
($1 = 16,285.0000 rupiah)
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A family member did not return a request for comment but has previously said that the family deny 'all allegations of wrongdoing and will robustly defend ourselves against these allegations'. Members of the Sobhan family are among a clutch of UK property owners whose assets the ACC has asked the NCA to consider freezing. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Two more individuals have come under scrutiny from the ACC as part of investigations into Chowdhury. Both have engaged in multiple property deals over the past year. One is Chowdhury's brother, Anisuzzaman, while the other is a successful British-Bangladeshi property developer, whom the Guardian has chosen not to name. Land Registry data shows recent market activity on four properties owned by Anisuzzaman Chowdhury. They include the sale of a £10m Georgian townhouse on the fringes of Regent's Park, central London, completed last July. A further three applications, understood to relate to refinancing, have taken place since. Lawyers for Anisuzzaman Chowdhury said he did not believe that there was any legitimate reason for any of his assets to be frozen and that the sale of the Regent's Park property was agreed in 2023, before the revolution. According to reports in Bangladesh, the ACC has previously been asked by the chair of a large local bank, UCB, to investigate whether Chowdhury helped the London-based property developer obtain loans irregularly from the lender. This year, a Bangladeshi court imposed a travel ban on the developer, who denies any wrongdoing. A further three applications for dealing relate to properties owned by the son and the nephew of Salman F Rahman, who runs the Beximco business group, one of Bangladesh's largest conglomerates. Ahmed Shayan Rahman and Ahmed Shahryar Rahman are under investigation by the ACC. The properties, including a £35m apartment in Mayfair's Grosvenor Square, were frozen by the NCA last month. Lawyers for the Rahmans said they denied any wrongdoing. They said 'political upheaval' in Bangladesh had led to allegations being made against many people, adding that they would 'engage with any investigation which takes place in the UK'. Joe Powell MP, the chair of an all-party parliamentary group examining corruption and tax, wants any such investigations to move quickly. 'History tells us that assets can quickly evaporate unless swift steps are taken to freeze those assets while investigations are under way,' he said. Powell welcomed the action already taken by the NCA but urged it to 'expand the net as soon as possible'. The Labour MP leads a group of parliamentarians that is targeting London's reputation as a home for suspicious funds and those who enable the transfer of that wealth, particularly given the renewed focus on oligarchs that followed Russia's invasion of Ukraine. Transparency International is raising questions over the role played by multiple UK firms that have acted for individuals the NCA has already targeted, or who the ACC has named. The law firm Jaswal Johnston submitted applications on properties owned by the Rahmans. A spokesperson said the firm had not been involved in any sales and that it took its due diligence obligations 'extremely seriously'. Merali Beedle, a law firm that made applications for dealing on one £35m Rahman property and another £8m home owned by a member of the Sobhan family, declined to comment. 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