Mallarangeng was found guilty of accepting bribes (IDR 4 billion and USD $550,000) from contractor Global Daya Manunggal (the brother of the former minister played an important role in the transfer of these funds). Mallarangeng was bribed in order to manipulate the procurement and budgeting process of the Hambalang sports complex (constructed in the context of the 2011 SEA Games). Part of the money that Mallarangeng received was used to fund his campaign in the Democratic Party (Partai Demokrat, or PD) chair election. This party is the political vehicle of incumbent president Susilo Bambang Yudhoyono. Former party treasurer of the PD, Anas Urbaningrum, is awaiting trial for his part in the Hambalang affair. Dedy Kusdinar, the former financial and domestic bureau chief of the Sports Ministry, was the first person to be charged in this case.

Reportedly, Mallarangeng initially requested a USD $4 million bribe to push through a contract to state-owned construction firm Adhi Karya. The operations head at Adhi Karya, Teuku Bagus M. Noor, has also been convicted. The government budget for the Hambalang project ballooned to IDR 2.5 trillion, causing a loss to state funds of IDR 470 billion (USD $40.2 million).

Further Reading:

Analysis of Political Corruption in Indonesia