A presentation and analysis of Metta Dharmasaputra's book about Vincent vs Sukanto Tanoto

1. Whistle-blowing and The Role of Media:
THE CASE OF VINCENT
VS. SINAR ASIA AGRI
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2. Asian Agri
 Founded in 1979 and is based in Medan, Indonesia.
 One of the largest producers of crude palm oil (CPO) in
Asia, managing 28 oil palm plantations and 19 palm oil
mills. Mostly in Sumatera.
 Vertically integrated, producing both raw materials
(CPO) and finished goods (margarine, refined palm
oil, lubricants, biofuel).
 In December 2012, the Indonesian Supreme Court
vindicts Asian Agri Group to pay Rp 2.52 trillion ($260
million) in back taxes and fines for tax embezzlement
amounting 1.25 trillion.
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3. Structure & Owner
•
AAG operates under Royal
Golden Eagle (RGE) group, with
businesses in pulp and
paper, construction, oil and gas.
•
Company structure has been
made in a way that is enabling
transfer pricing practice.
Sukanto Tanoto
$2.8 B net worth, #7 Forbes’
Indonesia richest, #503
worldwide.
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4. Vincent’s Profile
 Full Name: Vincentius Amin Sutanto
 Former Financial Controller at Asian Agri Group
 The whistleblower of tax embezzlement AAG
 Embezzling AAG funds
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5. What has Vincent done?
 Whistle blowing about AAG tax embezzlement for about
1,25 trillion IDR (US $129,47 million)
 Former Financial Controller at AAG owned by Sukanto
Tanoto
 Tried to swindle money from Asian Agri Oil and Fats in
Singapore as the subsidiary of AAG.
 Together with his colleagues, Hendry Susilo and Agustinus
Ferry Sutanto, setup to hold funds for about US $3,1
million from AAG.
 Vincent has run out and try to ask forgiveness from
Sukanto Tanoto, but failed.
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6. Chronology
22 Nov 2006:
Vincent
threatened AAG
to release him or
else he will
publicize AAG
tax evasion
practices to
public.
13 Nov 2006: Vincent
made a fund transfer
from AAG account to
his fake account with
imitated signatures.
12 May 2004:
Planned the
embezzlement.
2004-2006:
Preparation.
Plan
delayed for
two years.
17 Nov 2006:
Vincent
became
suspect, ran to
Singapore.
28 Nov 2006:
Vincent met
Metta in
Singapore to tell
the tax evasion
case and give all
evidences.
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7. Whistle-blowing Defined
Whistle-blowing is when an employee
discovers evidence of malpractice or
misconduct in an organization and
decided to bring it to the attention of
others.
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8. Whistle-blowing Defined
Whistle-blowing is appropriate or ethical under five conditions:
1. Will cause serious and considerable harm to the public, break existing laws.
2. When the employee identifies a serious threat of harm, he or she should report it
and state his or her moral concern.
3. When the employee’s immediate supervisor does not act , the employee should
exhaust the internal procedures and chain of command to the board of directors.
4. The employee must have documented evidences.
5. The employee must have valid reasons to believe that revealing the wrongdoing to
the public will result in the changes necessary to remedy the situation.
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9. Discussion

To this day, Vincent don’t really understand why he had even thought
about the plan to take the money by transferring it to a fake account.

A study suggest that people seem to be less ethical when they’re faced with
significant temptation and when the payoff for unethical behavior is
high, suggesting that a cost-benefit analysis of sorts may guide ethical
behavior.

Vincent decision to contact Tempo Magazine which in turn assign one of
their top journalist Metta Dharmasaputra, is more like an act of vengeance.

One of his key success factor in this whistleblowing case is the fact that
Metta was fully supported by Tempo..
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10. Lessons Learned

It's clear whistleblowing is an important part of a participatory democracy.

Whistle-blowing is a serious action with real consequences, involving
conflicting moral, legal, economic, personal, family, and career demands
and choices.

Without big media scrutiny over this issue, key actors tend to pursue their
own interest without regarding the ultimate consequence which affect
government income.

State of legal practice in Indonesia makes it particularly hard for whistle –
blower to receive fair treatment for their sacrifice.
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11. THANK YOU
&
FEEL FREE
TO ASK
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