JAKARTA - The Corruption Eradication Commission (KPK) has warned state-owned enterprises (SOEs) about the risks of Chinese investments. According to KPK Deputy Chairman Laode M. Syarif, Chinese investments often ignore environmental standards, human rights, and good corporate governance.
"Ladies and gentlemen, I'm sure in SOEs you have a lot of partnerships with China. I repeat, with China. Good corporate governance is something rather alien to many people in China," said Mr Syarif in a seminar with SOEs in Kuningan, South Jakarta as quoted by Detik.com, Thursday (9/5).
"Thus, they rank first when it comes to fraud improper payment. They invest a lot here."
Mr Syarif added that supervision in Chinese companies are not as strict compared to other developed countries such as the US and European countries. China has more flexibility in investing and as such SOEs need to be wary.
To monitor foreign investments, the KPK is currently lobbying the Supreme Court to introduce a law regarding corporate crimes so that the KPK can have the power to arrest privat parties involved in corruption. Mr Syarif added that 70% of corruption cases in Hong Kong, Singapore, and New Zealand involve the private sector and SOEs.
"Of everyone involved in corruption, most of them are House of Representative members, followed by officials in the private sector. Is it enough if we only punish the individuals? We need to punish the companies as well," said Mr Syarif. (MS)