Two tried in $9.3m construction scam<\/p>\n
JAKARTA (JP): A prosecutor asked the Central Jakarta District
\nCourt on Monday for jail terms of six years and five years
\nrespectively for a developer and official charged in a US$9.3
\nmillion scam in the construction of a condominium project.<\/p>\n
Prosecutor Hamid Thahir also asked the court to order
\ndefendants Seno Margono, alias Tjiong Tjek Seng, president of
\nprivate developer PT Duta Adhiputra, and Hindro Tjahjono
\nSoemardjan, director of the government-controlled Kemayoran Area
\nDevelopment Board, to pay Rp 9.1 billion ($1 million)
\ncompensation.<\/p>\n
\"We consider it a crime in the development of the condominium
\ninstead of a civil case,\" Hamid said.<\/p>\n
The defendants also showed no remorse, he added.<\/p>\n
He declared the defendants violated Article 1 (a) of
\nCorruption Law No. 3\/1971 which carries a maximum penalty of a
\nlife sentence and\/or Rp 30 million fine.<\/p>\n
Hamid stated in the indictment that the defendants illegally
\nused a 25,000-square-meter plot of state land in Kemayoran,
\nCentral Jakarta, as collateral for bank loans.<\/p>\n
He said use of the land to obtain collateral was illegal since
\nit was not approved by then minister\/state secretary Moerdiono.<\/p>\n
Seno used land certificates to acquire loans amounting to Rp
\n65 billion from a bank syndication led by Bank PDFCI, he said.<\/p>\n
Seno, a son-in-law of businessman Hendra Rahardja, the owner
\nof the BHS Group, used Rp 48 billion of the loan to further his
\ncompany's interests, he said.<\/p>\n
Hamid said Seno and Hindro signed a cooperation agreement on
\nMarch 17, 1993, to construct the condominium project with a
\ncapital commitment of $61.87 million.<\/p>\n
He said that under the agreement, the board would provide the
\nKemayoran plot worth $9.37 million as part of the capital, while
\nSeno would provide the remaining $52.5 million capital
\ncommitment.<\/p>\n
Seno never provided the capital and, allegedly with Hindro's
\napproval, converted the status of the land from a state asset
\ninto a company assets to acquire the loan, he said.<\/p>\n
Presiding judge Poerwanto adjourned the trial for two weeks to
\nhear the defendants' plea. Both defendants have been remanded in
\ncustody. (jun)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/two-tried-in-93m-construction-scam-1447893297",
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"sponsor": "Okusi Associates",
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