This story is one familiar to Indonesians, but not on the international radar. The story begins with the East Asian Financial Crisis, where between 1997 and 1999 the central bank of Indonesia extended US $16 billion in liquidity assistance to help protect private banks from the massive withdrawal of foreign capital from the country.

Rather than using the money to help stabilise the economy, some bank owners simply took the money and ran. Most fled to Singapore or Hong Kong, countries with whom Indonesia has no extradition agreements.

Hendra Raharja fled Indonesia following the liquidation of his two banks, Bank Harapan Sentosa and Bank Guna International. Arrested trying to enter Australia from Hong Kong in 1999, Raharja was arrested by Australian immigration officers but was never extradited before his death in 2003.

In 2002, an Indonesian court sentenced him to life in prison for misusing 1.95 trillion rupiah [US $216.7 million] in central bank liquidity credits. By 2004, Indonesia had recovered only AUS $642,000 [US $574,784].

There have recently been some developments and cooperation - Australia is currently in negotiations with Hong Kong to bring US $800 million of Raharja’s assets back to Indonesia. Australia is said to be involved because the money was channelled through Australian banks, but also because Indonesia was having no luck on its own.

Indonesia is reported to have contacted Hong Kong directly to return the assets, but was asked to pay a 20 percent administration fee and then to split the remaining 80 percent between the two countries.

This story highlights the urgent need of international cooperation on the many legal and technical issues involved in getting stolen money back, and in prosecuting those responsible.

This was one of the main messages surrounding the launch of the Corruption Perceptions Index 2007 last month.

Global financial centres, found in some of the world’s wealthiest countries and territories, play a pivotal role in allowing corrupt officials to move, hide and invest their illicitly gained wealth. In many cases, asset tracing and recovery are hindered by the laundering of funds through offshore banks in jurisdictions where banking secrecy remains the norm. Through the UNCAC, priority should be given to improving international cooperation and mutual legal assistance, expediting action to recover assets and developing legal and technical expertise in nations requesting the return of looted assets.

Often asset recovery cases involve corrupt state officials – who are well known due to their positions as presidents or ministers, or due to their extravagance with land, cars, or clothes. But there are also so many more cases, largely removed from the media spotlight, that do dramatically affect the financial stability of a country and the relative livelihood of its people.

The case of Hendra Raharja is one of these cases – and there are other bankers like him. In Indonesia, state audits showed that more than 95 percent of the total 144.5 trillion rupiah [US $15.96 billion] in Bank of Indonesia liquidity credits had been misused. The Attorney General of Indonesia had questioned 65 people in regards to this matter by the end of 2006, but of them, only 16 had been taken to court and only one had gone to prison.

Not only is important to recover stolen funds and to bring the corrupt to justice, but it is important that the cases are made public to bring attention to the specific case. Doing so raises public expectations that it be resolved, raises the international profile of a case, thereby perhaps better stimulating international cooperation.