Ads boss charged with corruption

JAKARTA: Prosecutors have charged the director of an advertising company with corruption over a work agreement with state-owned timber company PT Perhutani, which caused the state to lose some Rp 1.97 billion (US$218,888).

Prosecutor Haryono told the Central Jakarta District Court on Wednesday that defendant Deden Akbar Karsawijaya, director of PT Avicom Promo Media, had colluded with PT Perhutani officials in arranging and marking up a tender for the timber company's corporate image campaign in 2002.

The defendant had received full payment for his company's advertising services although it aired only 283 of the 461 TV commercials agreed upon, and had overcharged for them.

The defendant violated articles 2 and 18 of Law No. 31/1999, as amended by Law No. 20/2001, on corruption and self-enrichment, which carries a maximum sentence of 20 years in jail.

No Perhutani officials are on trial in the case, although the prosecution stated that some of the corrupted state funds had been disbursed by the defendant to officials. -- JP