Moerdiono gives testimony in $9.3m corruption case<\/p>\n
JAKARTA (JP): After having \"disappeared\" for months following
\nthe resignation of president Soeharto, former minister\/state
\nsecretary Moerdiono turned up again on Monday.<\/p>\n
This time he appeared not for a political statement but to
\ngive his testimony at the Central Jakarta District Court in the
\nUS$9.3 million corruption case involving the construction of the
\nTaman Kemayoran condominium block.<\/p>\n
Attired in brown long-sleeved shirt and trousers, Moerdiono --
\nwho was famous while in Soeharto's Cabinet for his stuttering
\ndelivery when disclosing government policy -- often replied to
\nquestions raised by the panel of judges by saying that he had no
\nidea about many details in the documents relating to the project.<\/p>\n
\"I don't remember, your honors. There were too many documents
\nI had to sign when I was a minister. So, it's impossible for me
\nto remember all of them,\" he said.<\/p>\n
Moerdiono's testimony was related to the case bringing the
\ndirector of the state-run Kemayoran Development and Control Board
\n(DP3KK), Hindro Tjahjono Soemardjan, and president of private
\ndeveloper PT Duta Adhiputra, Seno Margono, alias Tjiong Tjek
\nSeng, as defendants.<\/p>\n
DP3KK is under the supervision of state secretary and controls
\nthe development of the proposed 454-hectare Kemayoran satellite
\ncity project launched since 1990<\/p>\n
The Kemayoran project is expected to be the home to dozens of
\nmajor development projects, including the condominium, the
\nambitious 558-meter-high Jakarta Tower, a golf course, a
\nsophisticated business and telecommunications center, luxury
\napartments, schools and hospitals.<\/p>\n
Prosecutor Hamid Tahir told the court on Monday that PT Duta
\nAdhiputra, the developer for the condominium block, had only
\nsubmitted Rp 9 billion to the board as of April 1996 from the
\ntime that the construction work on the project started in 1993.<\/p>\n
The amount of the payment, he said, is only half of the land
\nvalue of $9.3 million, which should be at least Rp 18 billion at
\nthe conversion rate of Rp 2,000 per dollar, meaning that the
\ndeveloper has caused the state Rp 9 billion in losses.<\/p>\n
Fact<\/p>\n
When asked to comment on the fact, Moerdiono in his testimony
\nreplied: \"I could not say that it's a loss. Maybe it's just a
\nfirst payment,\" he said calmly.<\/p>\n
Hamid earlier charged the defendants with having illegally
\nused the land to put up as collateral against a bank loan, saying
\nthat they should have first got approval from the state
\nsecretary.<\/p>\n
In his testimony, Moerdiono told the court many times that he
\ndid not remember having signed any document or not, but he
\ninsisted that he had given full authority to the board to handle
\nthe project.<\/p>\n
According to Moerdiono, he had in his capacity as a minister
\nat that time given authority to the board for the construction of
\nthe condominium building which stands on a 25,000-square-meter
\nplot belonging to the state in the defunct Kemayoran airport in
\nCentral Jakarta.<\/p>\n
The four-hour trial which started at 9 a.m was also attended
\nby several DP3KK employees and noted sociologist Selo Soemardjan,
\nHindro's father.<\/p>\n
Before leaving the court room, Moerdiono apologized to the
\npanel of judges, prosecutors, and the defendants' lawyers.<\/p>\n
\"I apologize if there were mistakes during my testimony. It
\nwas my first experience entering a courtroom, your honors,\" he
\nsaid.<\/p>\n
Both Hindro and Seno, who were accompanied by lawyers Amir
\nSyamsuddin and Alamsjah Hanafiah respectively, did not reject
\nMoerdiono's testimony.<\/p>\n
Presiding judge Purwanto adjourned the trial until next week
\nto hear other witnesses' testimonies.<\/p>\n
Prosecutor Hamid earlier said Seno and Hindro, who were once
\ndetained but then released on bail, signed a cooperation
\nagreement on March 17, 1993, to construct the condominium project
\nwith a capital commitment of US$61.87 million.<\/p>\n
He said that under the agreement the board would provide the
\nKemayoran plot worth US$9.3 million as part of the capital, while
\nSeno would provide the remaining capital commitment of US$52.5
\nmillion.<\/p>\n
In reality, however, Seno never provided the capital and even,
\nallegedly with Hindro's approval, converted the status of the
\nland from state assets into company assets to acquire the loan,
\nhe said.<\/p>\n
Hamid said Seno then used the land certificates to acquire a
\nloan amounting to Rp 65 billion from a bank syndicate led by Bank
\nPDFCI.<\/p>\n
He said Seno, who is also the son-in-law of businessman Hendra
\nRahardja, the owner of the BHS Group, had used Rp 48 billion of
\nthe loan to further his company's interests.<\/p>\n
Hamid charged the defendants under Article 1 (a) of Corruption
\nLaw No. 3\/1971, which carries a maximum penalty of a life
\nsentence and or a fine of Rp 30 million. (jun)<\/p>",
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