VZCZCXRO3778
PP RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #0016/01 0031003
ZNR UUUUU ZZH
P 031003Z JAN 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 7550
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHBY/AMEMBASSY CANBERRA 1838
RUEATRS/DEPT OF TREASURY WASHDC
RUEAWJB/DOJ WASHDC
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC

UNCLAS SECTION 01 OF 02 JAKARTA 000016 
 
SIPDIS 
 
SENSITIVE 
 
AIDAC 
 
SIPDIS 
DEPARTMENT FOR INL, EAP/IET, INR/EAP 
DEPARTMENT PLEASE PASS AID 
TREASURY FOR IA 
USAID FOR ANE/EAA 
MCC FOR MARIA LONGI 
 
Medan Cable 001 for 2008 
 
E.O. 12958: N/A 
TAGS: PREL PGOV PINR ECON SOCI KCRM ID
SUBJECT: Medan Mayor Busted on Corruption Charges, Vice Mayor 
Reportedly on the Run 
 
Ref 07 Jak 3349 
 
JAKARTA 00000016  001.2 OF 002 
 
 
¶1.  (SBU) Summary: Notoriously corrupt Medan Mayor Abdillah was 
arrested in Jakarta on January 2 by the National Corruption 
Eradication Commission (KPK) in a case which also implicated his 
vice mayor and senior provincial legislators. The arrest was not 
unexpected and the arrest of the Vice Mayor is reportedly imminent. 
The implicated legislators appear to have escaped serious charges in 
exchange for the return of more than USD 44,000 given to them by the 
mayor and vice mayor. This case constitutes the first significant 
arrest by the KPK since a controversial new Board of Commissioners 
was installed in December. End Summary. 
 
Mayor of Medan Arrested, Vice Mayor Sought 
------------------------------------------ 
¶2.  (SBU) Medan Mayor Abdillah was arrested in Jakarta on January 2 
on corruption charges. Mayor Abdillah and Vice Mayor Ramli had been 
named as suspects in a kickback scheme involving the purchase of 
fire engines and other scams. The arrest came on January 2 after an 
extensive and protracted investigation.  According to KPK 
Spokesperson Johan Budi, Abdillah will remain in detention for the 
next 20 days while formal charges are prepared against him. 
 
¶3.  (SBU) After the arrest, Deputy KPK Chairman Chandra Hamzah 
issued a public statement accusing Abdillah of enriching himself and 
others through corrupt acts costing the government more than USD 3.2 
million, including a USD 330,000 mark-up scheme on city-purchased 
vehicles. Hamzah detailed additional allegations including budget 
and contracting irregularities, awarding of lucrative contracts to 
shell companies and firms linked to his family, and shady land deals 
made for personal enrichment. This case is the first significant 
arrest by the KPK since a controversial new Board of Commissioners 
was installed in December. (reftel) 
 
¶4.  (SBU) The KPK has also issued an order for the arrest of Medan 
Vice Mayor Ramli on similar charges. KPK officials have stated 
publicly that they expect to arrest Ramli on January 3. According to 
several reports, Ramli did not show up for questioning and may be on 
the run. 
 
¶5.  (SBU) That Abdillah would be arrested on corruption charges has 
been an open secret in Medan for more than a year. In July 2007, 
after an anonymous official leaked details about the investigation 
to the local press and the KPK announced that the mayor and vice 
mayor were subject to a travel ban, Abdillah virtually disappeared 
from the public sphere. 
 
¶6.  (U) Following a short period during which it appeared that the 
investigation had stalled, Abdillah critic Leo Siagian, Coordinator 
of Civil Society for the Democratic Party, told local media on 
December 16 that he expected Abdillah to be behind bars before the 
end of the year. A hastily arranged visit by President Yudhoyono to 
Medan on December 19, reportedly made in part to assess the possible 
effects this case might have on the North Sumatran provincial 
elections coming up in April 2008, was considered the final step 
clearing the way for Abdillah's arrest. 
 
Legislators Cooperate with Investigators 
--------------------------------------------- ---- 
¶7.  (SBU) Several senior provincial legislators, including the 
President of the North Sumatran legislature, Abdul Wahab Dalimunthe, 
were also implicated in this case. The KPK questioned Dalimunthe 
extensively, and he eventually agreed to turn over nearly USD 11,000 
to the KPK on December 18. According to Dalimunthe, Vice Mayor Ramli 
gave him the money for mosque construction, an explanation few find 
credible.  Another legislator, Yulisar Parlagutan Lubis, returned 
USD 33,000 to the KPK.  Contacts in Medan have said that Dalimunthe 
and Lubis returned the money and promised to cooperate with 
investigators in order to avoid serious charges. KPK officials have 
told the press that the men's cooperation will mitigate possible 
penalties but not absolve them from guilt. 
 
Who's Minding the Store? 
------------------------ 
¶8.  (SBU) City Secretary (Medan's most senior civil servant) 
Affifudin Lubis is currently acting mayor of Medan.  On December 27, 
Lubis told Consulate Medan that he had been designated acting mayor 
 
JAKARTA 00000016  002.2 OF 002 
 
 
until further notice. Lubis added that Abdillah had already been in 
Jakarta for several weeks at the insistence of KPK investigators. 
Lubis is considered to be a clean, competent administrator and was a 
recipient of a U.S. International Visitor grant. He remains a close 
contact of the Consulate. 
 
¶9.  (U) This cable has been coordinated with Embassy Jakarta. 
HUME