Hayne’s failure to tackle bank structure means that in a decade or so another treasurer will have to call another royal commission

Andrew Linden, RMIT University and Warren Staples, RMIT University

Every 10 to 15 years it’s the same.

Ever since financial deregulation in the 1980s we’ve had a finance industry scandal followed by an inquiry, a quick fix, and a declaration that it shouldn’t happen again.

In the early 1990s there were royal commissions into the A$1.7 billion Tri-continental/ State Bank Victoria collapse, the A$3.1 billion State Bank of South Australia collapse and the WA Inc collapse which explored the interrelated activities at Rothwells bank, the A$1.8 billion collapse of Bond Corporation and the A$1.2 billion siphoned from Bell Resources.

A decade later in 2003 Justice Owen reported on the A$5.3 billion collapse of Australia’s largest insurer HIH.

And now, bang on schedule, we have Kenneth Hayne delivering the final report of a royal commission into systemic misconduct in banking, superannuation and financial services industry to a government that voted 26 times against holding it.

There are two particularly striking things about the 10-15 year cycle.

One is the rhythm of public inquiries followed by reports, then (sometimes) trials, then books, then almost everyone forgetting (except for those personally scarred) only for problems to resurface later.

The other is that the times between have been punctuated by government-commissioned banking and financial system reviews: the 1991 Campbell Inauiry, the 1996 Wallis Inquiry, the 2010 Cooper superannuation review and the 2012 Murray Review . Each either missed or downplayed the links between poor governance, industry structure, systemic misconduct and prudential risk.

Has Kenneth got the frequency right this time?

Commissioner Kenneth Hayne’s 1000-page final report hasn’t gone far enough to end this cycle.

While his referral of 24 misdeeds for possible criminal and civil prosecution will help in righting past wrongs and perhaps focus the minds of directors and executives, the impact will be generational rather than permanent.

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Read more:
Compensation scheme to follow Hayne’s indictment of financial sector

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The flurry of prosecutions and actions will again reveal problems with the law – gaps in coverage, inadequate penalties and cases the law won’t allow to stand up.

Taken together the recommendations are a patchwork of measures that if implemented will over time be eaten away – and at some point will be dismantled – because the rationale for their adoption will be forgotten.

Even before they are implemented they will have to run the gauntlet of a massive subterranean lobbying effort from industry to water them down, something Hayne indicated he expected.

The deepest flaw lies unaddressed…

Even though Hayne emphasises the link between systemic misconduct, governance, structure and prudential (system-wide) risk, something that Treasury, the RBA and Australia’s three business regulator amigos, APRA, ASIC and the ACCC, have long rejected, he makes no concrete suggestions to tackle it.

As we have written previously, research tells us big systemically important shareholder-focused universal for-profit banks that cross-sell products are more profitable than smaller banks in the good times but are more prone to misconduct and to failure in the worse times.

Australia’s big four fit the bill – they’re big, they have been vertically integrated one-stop shops, they are very, very profitable and they are very focused on shareholder returns.

While the banks, apart from Westpac, have divested themselves of wealth management and insurance arms for now there is nothing stopping them reacquiring them in the future.

This means we are once again 10 or 15 years away from systemic misconduct resurfacing as big banks seek to become more profitable.

…and putting the onus on directors won’t much help

While heads might roll in yet another round of internal investigations to fix bank culture, it is wise to remember that as Adele Ferguson observed ANZ’s internal investigation of the Opes Prime collapse left the bigger governance lessons “unlearned”.

Directors and senior executives of failed companies continue to live charmed lives.

The directors of Babcock and Brown were cheered as they left the building, while friends and family of the disgraced One.Tel director Jodee Rich have resurfaced at Hayne and other public inquiries.

Some of the One.Tel directors have had long corporate careers. The former chair at of the collapsed Allco Finance Group Bob Mansfield went on to review the ABC.

As Adam Schwab bluntly put it, “corporate Australia is nothing if not forgiving”.

It’ll chase horses rather than close doors

Hayne is persisting with a chasing bolting horses approach to misconduct that relies on detection and enforcement.

We have argued this approach is just not as a effective as other alternatives such as two-tier boards and employee directors which have a better track record of keeping stable doors closed and horses tethered.

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Read more:
Banking Royal Commission: no commissions, no exemptions, no fees without permission. Hayne gets the government to do a U-turn

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Without them we could very easily have another crisis and another royal commission in 15 to 15 years time.

Ireland has taken a been prepared to change corporate structures. After the meltdown of its financial system triggered by the end of a “classic vanilla property boom” its parliament legislated to appoint public interest directors to the boards of its failed banks.

These changes were designed to ensure banks directors put the public interest first, ahead of shareholders interests and even customers interests.

It’s beyond time we did it here.

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Andrew Linden, Sessional Lecturer, PhD (Management) Candidate, School of Management, RMIT University and Warren Staples, Senior Lecturer in Management, RMIT University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Church in China to Risk Worshipping in Park

Evicted from one site and denied others, unregistered congregation resorts to open air.

LOS ANGELES, April 7 (CDN) — One of the largest unregistered Protestant churches in Beijing plans to risk arrest by worshipping in the open air this Sunday (April 10) after eviction from the restaurant where they have met for the past year.

The owner of the Old Story Club restaurant issued repeated requests for the Shouwang Church to find another worship venue, and authorities have pressured other prospective landlords to close their facilities to the 1,000-member congregation, sources said. Unwilling to subject themselves to the controls and restrictions of the official Three-Self Patriotic Movement (TSPM), the congregation has held three services each Sunday in the restaurant for more than a year.

Church members have said they are not opposed to the government and are not politically active, but they fear authorities could find their open-air worship threatening.

“Normal” (state-sanctioned) religious assembly outdoors is legal in China, and even unregistered church activity is usually tolerated if no more than 50 people gather, especially if the people are related and can cite the gathering as a family get-together, said a source in China who requested anonymity. Although the congregation technically risks arrest as an unregistered church, the primary danger is being viewed as politically active, the source said.

“For a larger group of Christians to meet in any ‘unregistered’ location led by an ‘unregistered’ leader is illegal,” he said. “The sensitivity of meeting in a park is not being illegal, but being so highly visible. Being ‘visible’ ends up giving an impression of being a political ‘protest.’”

The congregation believes China’s Department of Religious Affairs has overstepped its jurisdiction in issuing regulations limiting unregistered church activity, according to a statement church leaders issued this week.

“Out of respect for both the Chinese Constitution [whose Article 36 stipulates freedom of worship] and Christian conscience, we cannot actively endorse and submit to the regulations which bid us to cease all Sunday worship activities outside of [the] ‘Three-Self Patriotic Movement’ – the only state-sanctioned church,” according to the statement. “Of course, we still must follow the teachings of the Bible, which is for everyone to submit to and respect the governing authorities. We are willing to submit to the regulations with passivity and all the while shoulder all the consequences which . . . continuing to worship outside of what is sanctioned by these regulations will bring us.”

The church decided to resort to open-air worship after a prospective landlord backed out of a contractual agreement to allow the congregation to meet at the Xihua Business Hotel, the church said in its statement.

“They had signed another rental contract with another property facility and announced during the March 22 service that they were to move in two weeks,” the source said. “In spite of the fact that they had signed a formal contract, the new landlord suddenly called them on March 22 and refused to let them use the facility.”

The landlord offered various excuses for reneging on the contract, according to church leaders, and that disappointment came after 15 months of trying to obtain the key to another property the church had purchased.

“The space in Daheng New Epoch Technology building, which the church had spent over 27.5 million RMB [US$4.2 million] to purchase, has failed to hand the key over to the church for the past year and three months because of government intervention,” the church said in its statement. “For the past year, our church has not had a settled meeting place.”

Beginning as a house church in 1993, the Shouwang Church has been evicted from several rented locations. It also met outside after its last displacement in 2009. The congregation does not believe its calling is to split up into smaller units.

“For the past several years the church has been given a vision from God to be ‘the city on a hill,’” the source said. “Especially since 2009, when they officially began the church building purchase, they have been trying to become a more officially established status. At this point, they feel that they have not completed the journey in obedience to God.”

The number of Protestant house church Christians is estimated at between 45 and 60 million, according to Yu Jianrong, a professor at the Chinese Academy of Social Sciences Rural Development Institute. Yu and others have concluded that house churches are a positive influence on society, but the government is wary of such influence.

Yu estimated another 18 to 30 million people attend government-approved churches – potentially putting the number of Christians higher than that of Communist Party members, which number around 74 million.

The government-commissioned study by Yu and associates suggested that officials should seek to integrate house churches and no longer regard them as enemies of the state. The study employed a combination of interviews, field surveys and policy reviews to gather information on house churches in several provinces from October 2007 to November 2008.

Yu’s team found that most house or “family” churches fit into one of three broad categories: traditional house churches, open house churches or urban emerging churches. Traditional house churches were generally smaller, family-based churches, meeting in relative secrecy. Though not a Christian himself, Yu attended some of these meetings and noted that the focus was not on democracy or human rights but rather on spiritual life and community.

The “open” house churches were less secretive and had more members, sometimes advertising their services and holding public gatherings, he found. Urban emerging churches functioned openly but independently of TSPM churches. In some provinces such as Wenzhou, these churches had constructed their own buildings and operated without interference from local officials.

While some house churches actively seek registration with authorities to avoid arrests and harassment, they would like the option of registering outside the government-approved TSPM structure, as they disagree with TSPM beliefs and controls. Many unregistered evangelical Protestant groups refuse to register with TSPM due to theological differences, fear of adverse consequences if they reveal names and addresses of church leaders or members or fear that it will control sermon content.

Report from Compass Direct News
http://www.compassdirect.org

Somalia’s militant group pursues Christians into Kenya

Somalia’s militant group al Shabaab is no longer confining its agenda to the country’s borders. They are now spreading into neighboring countries. There will not be a rescue coming from the Somali government, reports MNN.

Todd Nettleton with Voice of the Martyrs says the peacekeeping help that Somalia is getting is hampered by the internal anarchy. "How do you provide support to a country that is basically a failed state, where there is chaos on the ground? "

A "failed state" describes a country with a fractured social and political structure. Nettleton notes, "Really, there is no authority structure. There is no government body that really has power to enforce their will on the country." Sadly, Somalia has been leading the Failed States Index for three years’ running.

The conflict is now extending into Kenya. One reason might be al Shabaab’s intent to eradicate Christianity and create a Muslim state. Nettleton explains. "We heard a report that al Shabaab literally had a list of Christians that they were seeking."

Since al Shabaab is hunting believers, they are fleeing. "There are Christians who have had to leave Somalia who are in some of these refugee camps in surrounding nations. As the al Shabaab philosophy spreads into those camps, those Christians are put directly at risk." For example: Kenya.

Despite the oppression, Nettleton says the Gospel can’t be discounted. There is still a remnant church, albeit deep underground.

Voice of the Martyrs has found a way to let them know they’re not forgotten. "It’s a challenge to find Christians, it’s a challenge to support them. We have provided some help to the families of martyrs in Somalia."

While the situation seems hopeless, there is one avenue that surpasses the political venues. "The most significant thing that we can do is to pray for the country of Somalia, to pray especially for our Christian brothers and sisters there."

Somalia is ranked fourth on the Open Doors World Watch list of countries that are noted for their persecution of Christians.

Report from the Christian Telegraph

Church under Attack in Indonesia Agrees to Change Venue

Congregation accepts offer under condition that government build them permanent building.

JAKARTA, Indonesia, September 29 (CDN) — A West Java church has agreed to move temporarily to a government-selected site following Islamist harassment that included a Sept. 12 attack on two of its leaders.

The Batak Christian Protestant Church (Huria Kristen Batak Protestan, or HKBP) in Ciketing village, Bekasi, decided in a congregational meeting on Sunday (Sept. 26) to accept a government offer to move worship services to the former Organization and Political Party (OPP) building on the condition that local officials will keep a promise to build a new house of worship for them within two years in the Mustika Sari district.

The Rev. Luspida Simanjuntak, who received hospital treatment after she was struck with a wooden plank by suspected Islamic extremists in the Sept. 12 attack, said that the church was ready to stop struggling.

“We are tired of being intimidated and terrorized,” Pastor Simanjuntak said. “We will be able to worship quietly and peacefully.”

Church lawyer Saor Siagian said that the church had accepted the temporary move with the understanding that the Bekasi municipal government must fulfill its pledge. The government will build a new church building to replace the structure the church is leaving on a 2,500-square meter lot belonging to PT Timah, the Government Tin Mining Co. in the Mustika Sari area of Bekasi. The lot is zoned for general and social facilities.

The government had suggested two alternative locations: the PT Timah lot and a 1,900-square meter parcel in the Strada Housing area. The congregation and leaders of HKBP Ciketing chose the PT Timah property.

The first HKBP Ciketing worship service in the former OPP Building took place without incident on Sunday, with the Bekasi government providing buses to transport the congregation to the new site. Pastor Simanjuntak said the congregation is thankful for the new temporary site, but it does not accommodate the entire congregation. The 10-meter by 14-meter building accommodates 250 people, but normally 300 attend services, and some had to stand outside, she said.

Dozens of police guarded the location.

Zaki Oetomo, a Bekasi city official, told Compass that the building could be used rent-free for two years, with an extension possible if the church desired. The government has offered to provide the buses to transport the congregation to and from the site every week.

 

20-Year Wait

The Ciketing church originally met in the Pondok Timur Indah housing development with 10 families in 1990, and therefore has generally been called the HKBP Pondok Timur Indah.

“By 1995 it had grown to 30 families,” Manorangi Siahaan, a church member, told Compass.

In those days the worship services were held in different members’ homes. Manorangi acknowledged that the house church worship did spark some small protests.

Between 1990 and 2010, the church leaders requested building permits three separate times, in 1995, 2000 and 2010. Not once did the local government respond, church leaders said.  

By 2005 the congregation had grown to 150, and church leaders bought a 2,170-square meter lot in Ciketing village, near Bekasi City, to construct a church building. They built a semi-permanent structure, which was later torn down because they lacked a building permit under pressure from an Islamic group claiming to speak for the local citizens. As a result, the congregation went back to worshipping in homes on a rotating basis.

In 2007 the congregation had grown to 300 people. They bought a house in Pondok Timur Indah, in the Mustika Jaya area of Bekasi City, to use for worship. The Bekasi government sealed the house on March 1 under pressure from Islamic groups. On July 2, the government sealed the house a second time because the congregation was continuing to worship there. Then on July 11, the church was forced to move their worship service to a vacant property in Ciketing, which had been readied for a church building. This site was about 3 kilometers from their property in Pondok Timur Indah.

Protests by Islamic groups mounted each Sunday at the Ciketing site, culminating in the attack on Pastor Simanjuntak and elder Hasian Sihombing, who was stabbed in the stomach and heart.

Report from Compass Direct News

Chinese pastor, wife slain at church served by Lottie Moon

A Chinese pastor and his wife were slain Aug. 31 at Penglai Christian Church, where Lottie Moon, an icon of Southern Baptist mission work, served in the early 1900s in Penglai, China, reports Baptist Press.

Pastor Qin Jia Ye and his wife Hong En He, both in their 80s, were killed in the church’s office on Wednesday.

The suspect — a 40-year-old former church member — was arrested within an hour of the early morning incident.

The couple’s violent death is a shock to many, both in China and the United States. The church was closed for 49 years after communists came to power at the end of World War II, reopening in 1988 with only 20 people.

Qin reported 300 baptisms several years in a row. Today, there are 3,600 members.

Chinese newspaper accounts state that the suspect entered the church office carrying an axe and struck the pastor and his wife, killing them both.

The church eventually outgrew Moon’s original structure and built a modern 1,500-seat sanctuary next to it with the help of Johnson Ferry Baptist Church in Marietta, Ga.

"From the moment I met Pastor Qin, I could sense a Christ-like spirit," said Bryant Wright, Johnson Ferry senior pastor and current Southern Baptist Convention president. "We are incredibly saddened by this tragic event, but we know one of the Lord’s faithful servants is with Him forever in Heaven."

Qin graciously acted as tour guide for a large number of Southern Baptist leaders passing through Penglai who wanted to connect with the community where Moon served.

Wanda S. Lee, executive director-treasurer of Woman’s Missionary Union, visited the church during a 1997 China tour. In spite of numerous church responsibilities, Qin and his wife welcomed the group warmly, Lee said, and it was obvious they were well-loved and respected.

"We are deeply grieved at the news of [the] death" of Qin and his wife, Lee said. "It is a great loss to the Christian community."

Candace McIntosh, executive director of Alabama WMU, took seven college students to China in 2008 to experience firsthand the history and work of Southern Baptists. Penglai Christian Church was a stop on the tour.

McIntosh remembers admiring Qin’s humble and quiet strength as he prepared for worship, as well as his ability to state the message clearly for all to understand. After the service, Qin spent a great deal of time talking with the team of young women about Moon’s legacy.

"He was so encouraged that younger women were there, learning about the history of Lottie Moon and the Chinese church," McIntosh recalled. "I know the legacy of Lottie Moon will live on, but one of its greatest communicators is no longer with us. I know Qin’s legacy will live on, too."

Report from the Christian Telegraph

Messianic Jewish Church Won’t Appeal Israeli Court Ruling

Congregation sought apology for riotous attack on baptism service.

ISTANBUL, July 14 (CDN) — A congregation of Messianic Jews in Israel who recently lost a lawsuit against an ultra-orthodox Jewish group that allegedly incited a riot against them has decided not to appeal their case, the church’s pastor said.

After meeting with his congregation and members of the Messianic community in Israel, Howard Bass, pastor of Yeshua’s Inheritance church in Beer Sheva, said that although there are strong legal grounds for an appeal, he believes it is not God’s will to do so.

“We didn’t see that it’s right to appeal, even though there is good legal basis. But we don’t feel it’s the Lord’s will to appeal,” Bass said, later adding he felt the verdict was “totally distorted.”

In 2007, Bass filed suit against Yehuda Deri, chief Sephardic rabbi in the city of Beer Sheva, and Yad L’Achim, an organization that fights against Messianic Jews in Israel, for allegedly inciting a riot at a December 2005 service that Bass was leading.

On Dec. 24, 2005, during a baptismal service in Beer Sheva, a group of about 200 men pushed their way into a small, covered structure being used to baptize two new Christians and tried to stop the service. Police were called to the scene but could not control the crowd.

Once inside the building, the assailants tossed patio chairs, damaged audiovisual equipment, threw a grill and other items into a baptismal pool, pushed Bass into the pool and broke his glasses.

In the days before the riot, Yad L’Achim issued notices to people about a “mass baptism” scheduled to take place at the facility in the city of 187,900 people, 51 miles (83 kilometers) southwest of Jerusalem. In the days after the riot, Deri bragged about the incident on a radio talk show, including a boast that Bass had been “baptized” at the gathering.

Bass demanded either a public apology for their alleged role in the attack, or 1.5 million shekels (US$389,052) from the rabbi and Yad L’Achim.

The case, Bass said, was to “honor the name of Jesus Christ in Israel.” He said he sought monetary damages "to show how serious the offenses were under the law."

The 2005 incident was the second time the church had to deal with an attack after Yad L’Achim disseminated false information about their activities.

On Nov. 28, 1998, a crowd of roughly 1,000 protestors broke into a Yeshua’s Inheritance service after the anti-Christian group spread a rumor that three busloads of kidnapped Jewish minors were being brought in for baptism. The assailants threw rocks, spit on parishioners and attempted to seize some of their children, Bass said.

Bass decided to file the 2007 suit after consulting with members of his congregation and the greater Messianic community in Israel. On June 29, he held much the same meeting, with participants deciding not to appeal. Bass relayed details of the meeting in a group e-mail sent to interested parties.

“No one present, nor any who have communicated with me in the past few days, had a conviction that an appeal is the clear will of God,” he said in the e-mail. “Some were uncertain; others were against.”

The judge issued his decision May 24. Bass read about the decision on May 30 on a government website. The judge ruled that Bass’ attorneys did not prove that the rabbi or the group incited the riot.

“He’s saying what happened inside the walls is separate from what happened outside the walls,” Bass said.

He said he was “astonished” at the judge’s bias in the decision.

“It was a bit amazing to see how one-sided it was,” he said, later adding, “It’s not a righteous judgment, it is a bad judgment.”

Bass said he believes the verdict is a “message from God” that injustice toward Jews who accept Jesus as the Messiah is now the “state of things” in Israel.

The judge ordered Bass to pay a fine to the defendants and cover their legal expenses for a total of approximately 155,000 shekels (US$40,123). The judge gave Bass until June 11 to pay the fine. Because of an outpouring of financial support, the fees were being rapidly paid off, Bass said.

“It’s amazing how quickly people started donating,” he said. “That to me is a further indication of God’s favor in the lawsuit. He’s covered it.”

He said a substantial portion of the donations came from inside Israel.

Also in his e-mail, Bass admitted to approaching the case with his hands tied out of respect for others.

“We did not take to court certain persons who clearly were instrumental in the riot, knowing that they would not testify against the Chief Rabbi or against Yad L’Achim,” Bass said. “We strived to respect the Chief Rabbi because he is the Chief Rabbi of the city, despite his total lack of regard” for the church.

 

Sanctioning Violence

Bass said the verdict may embolden those who want to attack Messianic Jews in Israel. At minimum, he said, the verdict leaves open the potential for future violence.

“They were given nothing to restrain them,” he said. “They were not warned at all by the judge to be careful of what they do.”

The Yeshiva World, a newspaper that caters to the Orthodox Jewish community, has called Messianic Jews both “missionaries” and a “cult.” The newspaper quoted a statement made by Rabbi Dov Lifschitz, founder and chairman of Yad L’Achim.

“We mustn’t become complacent in the face of the ongoing efforts of the missionaries, even as they are licking their wounds from this loss,” Lifschitz said. “This ruling encourages us to continue to fight them with all the legitimate means at our disposal.”

Bass said he understands that not appealing the court loss may lead to the impression that his faith community accepts the judge’s ruling, and because of that, some people in Israel may now side with Yad L’Achim and other anti-Messianic groups.

“We’ve leaving ourselves open to all kinds of opinions,” he said.

But Bass said he is looking at the case in the long term and through the eyes of God. He said that Jesus’ trial was the perfect example of a public defeat and a travesty of justice that God used in a great way.

“His court case seemed like a loss according to the world at the time,” Bass said.

Report from Compass Direct News

Sealed Church in Bogor, Indonesia Appeals to UN

In Bekasi, another church is shuttered – again.

JAKARTA, Indonesia, July 6 (CDN) — The Gereja Kristen Indonesia (GKI) Taman Yasmin Church in Bogor, West Java has filed a religious discrimination appeal with the United Nations Special Rapporteur on freedom of religion or belief, church leaders said.

Since April 11 the congregation has held services on the roadside in front of the sealed church in stifling heat. The church pastor, the Rev. Ujang Tanusaputra, told Compass that the congregation has held Sunday services six times in front of the building that the mayor of Bogor sealed.

“We are going to continue worshipping by the roadside as part of the struggle to remove the seal,” he told Compass.

Tanusaputra said that the church had received an official building permit from the Bogor City government.

“Yet, somehow, because of a group that objected to the presence of a church, our construction was stopped and later sealed,” he said.

He said that even though the church brought suit against the sealing in court – and won – the congregation is not permitted to worship in the building, which is 80 percent completed.

Tanusaputra said he hopes the Lord will intervene to show that Indonesia is a country where laws are followed and all faiths may freely worship.

One of the church elders, Thomas Wadu Dara, said that before the church was constructed, and after the congregation had won the court case, there was a meeting with the Bogor mayor. The mayor told them to go ahead with construction and to build relations with the community so that their presence would be understood and accepted.

The construction was going smoothly until a Muslim group began demonstrating and the government sealed the building to appease them.

“I am greatly disappointed and cannot accept this reasoning in a law-abiding country,” Wadu Dara said.

Wadu Dara said he hopes that the Bogor government will be firm and honor the decision of the court in Bandung, the provincial capital.

“I hope that the seal will be taken away and that we can finish construction,” he said.

Jayadi Damanik, a member of the church’s legal team, added that the sealing of the church is arbitrary and without legal basis.

“We have requested that the Bogor government be aware of the sealing and remove it,” he said, adding that he was astonished that Bogor city officials were not obeying the Bandung provincial court decision in favor of the GKI Yasmin church.

The government wants people to obey the law, yet the government itself is not respecting the rule of law, Damanik added.

“This is most ironical in a law-abiding country such as Indonesia,” he said.

On June 20 Compass visited the church’s Sunday worship, where about 200 people met in a service limited to one hour. Approximately 100 policemen were present with at least 10 vehicles and nearby water cannon.

“If the building were unsealed, we wouldn’t need such tight police security,” said Wadu Dara.

During the service, a 20-year-old woman fainted from the heat of the sun.

 

Defying the Law

A survey by the denomination showed that there was a need for the church in the Taman Yasmin area. The Taman Yasmin Housing development had land zoned for a church, but that land was used for a worship place of another faith.

The GKI Yasmin development team purchased a 1,720-square meter commercial lot from PT Inti Inovaco and contacted community members, leaders, and civic groups regarding the construction of a church building. On March 10, 2002, the church had collected 170 signatures of citizens agreeing to the presence of a church on West Bogor Ring Road, Curug Mekar village, Bogor City.

The church canvassed the area six times between 2003 and 2006, holding public information meetings attended by hundreds of people, including youth and local leaders. It secured and submitted the necessary recommendations, and on July 13, 2006, the mayor of Bogor issued a decree granting GKI Yasmin a building permit.

On Aug. 18, 2006, the church held a public meeting with the head and the secretary of the Indonesian (Muslim) Cleric Elders (Majelis Ulama Indonesia Bogor), the West Bogor district officer, Muslim leaders, village heads, the chief and deputy chief of the West Bogor police and leaders of community organizations. The next day, a representative of the Bogor government who read a message from the mayor laid the church cornerstone.

Yet less than two months later, on Oct. 11, the church received a letter from the Bogor City secretary ordering the church to stop construction and move to another location.

On Dec. 6, 2006, the church received a letter from PT Inti Inovaco stating that the Taman Yasmin Housing area was not zoned for non-Muslim community facilities. The Taman Yasmin Great Mosque was using the land zoned for community facilities (its foundation had been laid). The church therefore decided to stay where it was, and on Jan. 10, 2007 laid the foundation for its building.

On Feb. 10, 2007 a demonstration took place in front of the Bogor City Legislature demanding that the church building permit be revoked. Four days later, the Bogor government sent a letter to the church freezing the building permit.

The church immediately reacted. It sent letters to the mayor, other involved government bodies, Muslim clerics and Islamic community organizations and filed a complaint with the national human rights commission.

The church argued that according to Article 6, paragraph 1 of Joint Ministerial Decree No. 8 and No. 9 (2006), there is no legal “freezing” of a permit. This decree says that a permit can be cancelled only through court proceedings. GKI Yasmin went to court.

On Sept. 4, 2008, the court in Bandung nullified the Bogor government letter “freezing” the building permit. Bogor City appealed the decision and lost. The Bandung court issued a letter on March 30, 2009 stating that Bogor City had exhausted all appeals.

With the legal issues cleared, the church resumed construction. On Jan. 8, 2010, however, the church received a threatening letter. A short time later, a band of people damaged a fence around the property.

On Feb. 25, Bogor Mayor Diani Budiarto retracted his recommendation for the project, citing community pressure and protests since the building permit had been issued in 2006. The church received a letter on March 8 from the Bogor government ordering that construction stop.

On March 11 the Bogor government hung a sign saying “sealed” on the fence without following legal procedures, so the church continued construction. Church leaders wrote a letter to police and a local military commander in April notifying them that worship services would start on April 11. On the day before this initial service, members of the church people were setting up chairs when police – in defiance of previous court decisions – arrived at 5 p.m., cut the lock on the gate, and replaced it with their own lock. They also placed a sign on the gate that read, “Sealed.”

Since April 11 the congregation has been holding services in front of the fence by the roadside.

 

SIDEBAR

In Bekasi, Dialogue Fails and Another Church is Closed

JAKARTA, Indonesia, July 6 (Compass Direct News) – After failed dialog between Indonesian officials and representatives of the Huria Kristen Batak Protestan (HKBP) Podok Timur Indah Church in Bekasi City, West Java, government officials sealed the house where the church was meeting.

The church pastor, the Rev. Luspida Simanjuntak, said the church that was meeting in Mustika Jaya district had attempted talks with the government, but pressure from Islamic organizations, including the Islamic Defenders’ Front, was so strong that the government could not stand up to it.

On June 20, Bekasi City officials sealed the building. Bekasi City Area Deputy Zaki Hoetomo admitted that the action was taken because of pressure from Islamic organizations upset by expanding Christian influence. Officials sealed it by placing a sign in front of the structure stating that it violated zoning, permit and construction regulations.

The church has been meeting in the house as the local government has delayed the processing of its application for a building permit.

Hoetomo said officials had contacted church leaders three times about the use of the house, but that there had been no response.

Members of the congregation wept as the building was sealed. Representatives of Islamic organizations, including the Anti-apostasy Forum of Bekasi, also witnessed the sealing.

Simanjuntak said the closure was unjust.

“How is it possible to forbid people to worship?” Simanjuntak told Compass, adding that the government was favoring the majority and neglecting others.

The pastor said the congregation will be firm and continue its regular worship at the place.

“We are going to stay at this house and worship according to our faith, even if we have to do it in the street,” Simanjuntak said.

The church of 1,500 members has thrived in the Mustika Jaya district for four years, its building permit application bogged down in bureaucracy.

Report from Compass Direct News

Recent Incidents of Persecution

Karnataka, India, June 30 (CDN) — Hindu extremists on June 23 beat two pastors, seriously injuring them in Chandapura, Anekal. The Evangelical Fellowship of India reported that after pastors Shidu Kurialose and Nithya Vachanam of Bethel Assembly of God Church conducted a Christian meeting in a home, armed extremists attacked them at a tea stall. The extremists accused the pastors of forceful conversion and started beating them with iron rods. Both pastors sustained serious injuries and were admitted in a local hospital. No police complaint was filed.

Tamil Nadu – After opposing a Christian convention on June 17-20, Hindu extremists from the Bajrang Dal on June 22 burned at least seven vehicles belonging to Jesus With Us Pentecostal Church in Mathikere, Hosur. The Global Council of Indian Christians reported that the incident started when the extremists on June 18 called on local authorities to revoke the organizers’ permit and convinced local Hindu shop owners to close their stores. Police arrested five Hindu extremists in connection with anti-Christian violence. Subsequently, under police protection, Christians moved their meeting to another area eight kilometers (five miles) from the original site.

Uttar Pradesh – Hindu extremists from the Rashtriya Swayamsevak Sangh disrupted the prayer meeting of the Jesus Church (Isha Garh) on June 21 in Firozabad and accused the pastor of forceful conversion. A source said the extremists forced their way into the church building and manhandled Pastor Breymond Shastri. The next day the extremists went to newspaper Amar Ujala with the accusation, and the local periodical published a false report that Pastor Shatri was taking part in forceful conversion activities. Area Christian leaders said no forceful conversion was taking place. The extremists warned the pastor he would be harmed if he continued to conduct worship services.

Uttar Pradesh – About eight Hindu extremists on June 20 disrupted the Sunday worship service of Apostolic Christian Assembly Church in Gorakpur. After shouting anti-Christian slogans outside the church building, the extremists stormed in and ranted against Christianity, putting a halt to the meeting as they accused the pastor of forceful conversion. Police arrived and chased the extremists away. At press time the extremists were still issuing threats to the pastor, warning him of harm if he continued conducting worship meetings, the Evangelical Fellowship of India reported. Police have provided protection to the pastor.

Karnataka – Based on a complaint by Hindu extremists against Christians of forceful conversion, Karnataka officials closed down a Christian orphanage on June 16 in Karwar. The Global Council of Indian Christians reported that state officials visited a school at the orphanage and issued a closure order to Spring of Hope Orphanage and Vocational Arts Training Centre, which has 61 tribal students. The home has been functioning for four years in an area long occupied by Siddi tribal Christians. At press time area Christian leaders were taking steps to resolve the conflict.

New Delhi – Suspected Islamic extremists beat an Afghani Christian, seriously injuring him, on June 14 in Malviya Nagar. A Christian source said two Islamic extremists on a motorbike beat Hamid Ullah on his head as he was walking home. The Christian fell on his stomach and the extremists continued to beat him, denigrating his faith, calling him “pagan” and warning him to convert to Islam or face harm. Afghani Christians have been facing warnings, threats and attacks in different areas of New Delhi, the source said, and the advocacy department of the Evangelical Fellowship of India has taken steps to help them.

Karnataka – After Hindu extremists from the Sri Ram Sena (Lord Ram Army) on June 9 attacked Pastor Vasanthe Kathedar of New India Church (NIC), police arrested him for allegedly creating communal disharmony and disrupting the peace – that is, practicing his Christian faith among Hindus – in Okkere, Belgaum. The Global Council of Indian Christians reported that the incident took place at the house of a NIC member where the Christians were meeting. The assault on the pastor lasted for about an hour and, as is customary in India, when police arrived they arrested and charged the victim of the crime.

Orissa – Hindu extremists from the Bajrang Dal on June 9 accused three Christians of forceful conversion and attacked them in Deogarh, Sambalpur. The Evangelical Fellowship of India reported that the incident took place when Hindu Biranchi Kistotta invited Pastor Lamuel Panaik, Pastor N. Philemon and Sudhir Kumar to celebrate the healing of his son, for whom Pastor Panaik had prayed. People of various faiths attended the celebration, including Hindu members of Kistotta’s family. At about 12:30 p.m., seven Hindu extremists accompanied by media personnel suddenly arrived and called Pastor Patnaik to come out of his house. When the pastor refused, the extremists rushed in and forcefully pulled out the three Christians. The extremists accused them of forceful conversion and beat Sudhir Kumar while manhandling the two pastors. Police arrived and questioned those present about whether forceful conversion was taking place, and people came forward to say that the Christians were innocent. Police took the three Christians to the police station as a safety measure, however, and arranged for their return home at 10:30 p.m. No police complaint was filed as the Christians chose to forgive the attackers.

Orissa – Hindu extremists on June 8 brutally attacked a Christian and threatened to kill him in Nuapada. The Global Council of Indian Christians reported that six Hindu extremists armed with daggers and sticks broke into the house of Bhakta Bivar, 19, while his parents were at a prayer meeting. The extremists verbally abused Bivar for his faith and started beating him. They dragged him to a Hindu temple, where they told him to deny Jesus as they continued to beat him, forced on him food offered to idols and threatened to kill him and his parents if they did not convert to Hinduism. The extremists burned four Bibles they had taken from his home and, forcing him to wear a saffron garment symbolic of the Hindu religion, dragged him out to the street, falsely announcing that he had returned to Hinduism. The extremists left after threatening to kill him if he continued to believe in Christ, as they have forbidden the existence of Christianity in the area. Following the filing of a complaint with police, five Hindu extremists were arrested the next day.

Karnataka – Police on June 7 arrested two Christian women after Hindu extremists from the Rashtriya Swayamsevak Sangh disrupted Sunday worship in Bovi Colony, Chickmagalur. According to the Evangelical Fellowship of India, the extremists barged into a church’s worship service and accused Kadaur Devaki and a pastor identified only as Lalathamma of creating communal disharmony and disrupting the peace. Police soon arrived and arrested the two women for “deliberate and malicious acts to outrage religious feelings” and sent them to Hassan Jail.

Tamil Nadu – Hindu extremists from a religious and cultural organization formed to defend the Hindu religion, the Hindu Munnani, demolished a church building under construction on May 28 near Rameshwaram. Catholic sources said the demolition came after a local Hindu Munnani leader identified only as Ramamurthy filed a complaint against construction of the building. Government officials sided with the Hindu extremists, claiming that the one church building, St. Anthony church, already existed and that a new one would create tensions. The structure was demolished, leaving area Christians shocked and shaken.

Chhattisgarh – Hindu extremists from the Bajrang Dal attacked a Christian school program from May 20 to May 29 in Jagbalput, beating a pastor and two teachers on May 27. Beaten were Pastor Rahul Pant and two teachers from Mission India. A source told Compass the extremists accused the Christians of forceful conversion and of using a government school for the Christian program, called Children Development Program (CDP), without permission. They also accused the Christians of distributing books containing conversion activities (biblical narratives). The extremists took the Christians to a police station, where officers questioned them. The Christians said they had permission from the village head, but the assailants said they need permission from the local collector. The parties reached an agreement wherein the Christians were forced to stop the CDP in the government school until they obtain the collector’s permission. The Christians were released without charges.

Karnataka – Opposing a church leader for conducting prayer meetings in his house, Karnataka police on May 26 verbally abused pastor Shiva Kumar and warned him not to conduct further Christian meetings in Mysore. The Global Council of Indian Christians reported that at about 7 p.m. police summoned Pastor Kumar and detained him until 10:30 p.m. Police forcefully obtained a written statement from the pastor, took his photograph and warned him not to conduct any Christian activities in the area.

Andhra Pradesh – Hindu extremists accused Pastor T. Paul of forceful conversion and beat him on May 24 in Narayanpet, Mahabubnagar, seriously injuring him. The All India Christian Council reported the Hindu extremists stopped Pastor Paul as he returned home in a Jeep after conducting a worship meeting. The extremists stopped his vehicle and dragged him out before beating him and accusing him of forceful conversion. The pastor received hospital treatment for internal injuries. Area Christian leaders have asked police to arrest the assailants.

Report from Compass Direct News

Messianic Jews in Israel Seek Public Apology for Attack

Christians await court decision on assaults on services by ultra-orthodox Jews.

ISTANBUL, April 23 (CDN) — After a final court hearing in Israel last week, a church of Messianic Jews awaits a judge’s decision that could force an ultra-orthodox Jewish  organization to publicly apologize to them for starting a riot and ransacking a baptismal service.

A ruling in favor of the Christian group would mark the first time an organization opposing Messianic Jews in Israel has had to apologize to its victims for religious persecution.

In 2006 Howard Bass, pastor of Yeshua’s Inheritance church, filed suit against Yehuda Deri, chief Sephardic rabbi in the city of Beer Sheva, and Yad L’Achim, an organization that fights against Messianic Jews, for allegedly inciting a riot at a December 2005 service that Bass was leading.

Bass has demanded either a public apology for the attack or 1.5 million shekels (US$401,040) from the rabbi and Yad L’Achim.

The case, Bass said, was ultimately about “defending the name of Yeshua [Jesus]” and making sure that Deri, the leadership of Yad L’Achim and those that support them know they have to obey the law and respect the right of people to worship.

“They are trying to get away from having any responsibility,” Bass said.

On Dec. 24, 2005, during a baptismal service in Beer Sheva, a group of about 200 men pushed their way into a small, covered structure being used to baptize two believers and tried to stop the service. Police were called to the scene but could not control the crowd.

Once inside the building, the assailants tossed patio chairs, damaged audiovisual equipment, threw a grill and other items into a baptismal pool, and then pushed Bass into the pool and broke his glasses.

“Their actions were violent actions without regard [for injury],” Bass said.

In the days before the riot, Yad L’Achim had issued notices to people about a “mass baptism” scheduled to take place at the facility in the sprawling city of 531,000 people 51 miles (83 kilometers) southwest of Jerusalem. In the days after the riot, Deri bragged about the incident on a radio talk show, including a boast that Bass had been “baptized” at the gathering.

The 2005 incident wasn’t the first time the church had to deal with a riotous attack after Yad L’Achim disseminated false information about their activities. On Nov. 28, 1998, a crowd of roughly 1,000 protestors broke up a Yeshua’s Inheritance service after the anti-Christian group spread a rumor that three busloads of kidnapped Jewish minors were being brought in for baptism. The assailants threw rocks, spit on parishioners and attempted to seize some of their children, Bass said.

In response to the 1998 attack and to what Bass described as a public, cavalier attitude about the 2005 attack, Bass and others in the Messianic community agreed that he needed to take legal action.

“What is happening here has happened to Jews throughout the centuries,” Bass said about persecution of Messianic Jews in Israel, adding that many in movements opposed to Messianic Jews in Israel are “arrogant.” He compared their attitudes to the attitudes that those in Hamas, a Palestinian group dedicated to the destruction of the State of Israel, have toward Israelis in general.

“They say, ‘Recognize us, but we will never recognize you,’” Bass said.

Long Battle

Bass has fought against the leadership of Yad L’Achim and Deri for four years through his attorneys, Marvin Kramer and Kevork Nalbandian. But throughout the process, Kramer said, the two defendants have refused to offer a genuine apology for the misinformation that led to the 2005 riot or for the riot itself.

Kramer said Bass’s legal team would offer language for an acceptable public apology, and attorneys for the defendants in turn would offer language that amounted to no real apology at all.

“We made several attempts to make a compromise, but we couldn’t do it,” Kramer said.  “What we were really looking for was a public apology, and they weren’t ready to give a public apology. If we would have gotten the public apology, we would have dropped the lawsuit at any point.”

Despite several attempts to reach Yad L’Achim officials at both their U.S. and Israeli offices, no one would comment.

The hearing on April 15 was the final chance the parties had to come to an agreement; the judge has 30 days to give a ruling. His decision will be issued by mail.

Kramer declined to speculate on what the outcome of the case will be, but he said he had “proved what we needed to prove to be successful.”

Belief in Israel

Bass said he is a strong supporter of Israel but is critical of the way Messianic Jews are treated in the country.

“Israel opposes the gospel, and these events show this to be true,” he said. Referring to Israel, Bass paraphrased Stephen, one of Christianity’s early martyrs, “‘You always resist the Spirit of God.’ What Stephen said was true.”

Kramer said that the lawsuit is not against the State of Israel or the Jewish people, but rather for freedom of religion.

“It has to do with a violation of rights of individuals to worship in accordance with the basic tenants of their faith and to practice their faith in accordance with their beliefs in accordance with law,” he said.

Terrorist Organization?

Bass’ lawsuit is just one of many legal troubles Yad L’Achim is facing. In February, the Jerusalem Institute of Justice (JIJ), a civil rights advocacy group, filed a petition asking Attorney General Yehuda Weinstein to declare Yad L’Achim a terrorist organization and order that it be dismantled.

In the 24-page document Caleb Myers, an attorney for JIJ, outlined numerous incidences in which Yad L’Achim or those linked with it had “incited hatred, racism, violence and terror.” The document cited instances of persecution against Christians, as well as kidnappings of Jewish women from their Arab partners.

“Israel is a ‘Jewish and democratic’ state, while the actions of Yad L’Achim are not consistent with either the noble values of Judaism or the values of democracy,” the petition read. “Not to mention the fact that it is a country that arose on the ashes of a people that was persecuted for its religion, and has resolved since its establishment to bear the standard of full equality, without discrimination on the basis of gender, race, religion or nationality.”

According to the document, Yad L’Achim went after people it viewed as enemies of ultra-orthodox Judaism. The group particularly targeted Messianic Jews and other Christians.

“Yad L’Achim refers to ‘missionary activity’ as if it was the worst of criminal offenses and often arouses fear of this activity,” the document read. “It should be noted that in the State of Israel there is no prohibition against ‘missionary activity’ as the dissemination of religion and/or faith among members of other religions/faiths, unless such activity solicits religious conversion, as stated in various sections of the Penal Code, which bans the solicitation of religious conversion among minors, or among adults by offering bribes. Furthermore, the organization often presents anyone belonging to the Christian religion, in all its forms, as a ‘missionary,’ even if he does not work to spread his religion.”

Particularly damning in the document was reported testimony gleaned from Jack Teitel. Teitel, accused of planting a bomb on March 20, 2008 that almost killed the teenage son of a Messianic Jewish pastor, told authorities that he worked with Yad L’Achim.

“He was asked to talk about his activity in Yad L’Achim and related that for some five years he was active in the organization, and on average he helped to rescue about five women each year,” the document read, using the Yad L’Achim term “rescue” to refer to kidnapping.

The 2008 bombing severely injured Ami Ortiz, then 15, but after 20 months he had largely recovered.

Teitel, who said Ortiz family members were “missionaries trying to capture weak Jews,” has been indicted on two cases of pre-meditated murder, three cases of attempted murder, carrying a weapon, manufacturing a weapon, possession of illegal weapons and incitement to commit violence.

In interviews with the Israeli media, Yad L’Achim Chairman Rabbi Shalom Dov Lifshitz said his organization wasn’t connected with the attacks of the Ortiz family or with Teitel.

Report from Compass Direct News

Official Orders Halt to Beleaguered Church in Indonesia

With construction permit in limbo, government also denies congregation’s temporary site.

JAKARTA, Indonesia, April 20 (CDN) — A local government official in Bekasi, West Java last week forbid all worship of the Filadelfia Huria Kristen Batak Protestan Church (HKBP) in Jejalan village.

Regent Sa’duddin on April 12 ordered a halt to all activities of the church, including worship services that have been held on a strip of roadside land since the government on Jan. 12 summarily sealed the church’s building, which was under construction.

Announcing the order at a meeting of government officials with the Rev. Palti Panjaitan, Vice-Regent Darip Mulyana said the reason for the closure of the church’s makeshift site was that worship interfered with “community activities,” though the site is on a nearly deserted roadside bordering vacant fields.

The regent also suggested that the church join with another HKBP congregation in the Graha Prima housing development, far from the Filadelfia church’s site. Pastor Panjaitan said the church objects to this suggestion as it would be impractical, creating time and transportation difficulties.

Mulyana said that Sa’duddin had ruled that the church needs to find a new place to construct its prospective permanent church building because local residents had rejected it – even though the church had secured approval from local residents when it submitted its application for a permit in 2008. The government has never acted on the application, and since then Islamic organizations have organized protests to try to pressure government officials to deny approval.

The church on March 30 filed suit against Sa’duddin for unilaterally closing their church building under construction.   

The church’s Tigor Tampubolon said the church would never have been forced to meet by the roadside if the government hadn’t sealed its building under construction without due process.

“We have been waiting for the government to grant us a temporary permit so that we can hold services, instead of forbidding them,” Tampubolon said. “It’s difficult for the 500 or so members to hold church beside the road, and it would be even more difficult if the location was moved, because most of the people live near the church.”

Tampubolon said the church had purchased 1,088 square meters of land, had obtained signatures of 60 people living near the church as well as letters of agreement from the Jejalan village head and leaders, and had submitted all necessary documents to the government in 2008.

The Bekasi Regency never took any action on the application, saying the permit needed to be discussed and approved by the Bekasi Interfaith Harmony Forum.

In December the church held a Christmas service in a temporary structure on the lot.

“We held our Christmas service there because we had village level permission and were waiting on permanent permission from the regency,” Tampubolon said.

The Christmas service drew a large mob of protestors claiming to act on behalf of the local citizens. The mob demanded that services end and that no Christian worship take place in the area.

The regent then recommended that the church hold services in Jejalan village hall, but when the congregation tried to do so on Jan. 3, another demonstration harried them. Since then the church has held worship services on the roadside.

The Filadelfia congregation has been active since 2000, with services initially held in the pastor’s home. In 2006, a mob of 300 people swarmed the pastor’s home during a Sunday morning service. Claiming to be neighbors, they pressured the pastor to sign a document promising not to hold religious meetings at his home.

Report from Compass Direct News