AGO names Arifin suspect in graft case

JAKARTA (JP): Businessman and politician Arifin Panigoro has been named a suspect for his involvement in several graft cases, the Attorney General's Office announced on Tuesday afternoon.

Spokesman Muljohardjo explained that the investigating team had found sufficient evidence in documents and witnesses' testimonies to take further action.

Arifin is chairman of the Indonesian Democratic Party of Struggle (PDI Perjuangan) faction at the House of Representatives (DPR), and he had proposed to bring forward the special session of the People's Consultative Assembly. The party, however, has rejected the idea.

Muljohardjo revealed that one of the cases was related to a loan agreement between Arifin's company Medco group and state- owned investment company PT Bahana Pembinaan Usaha Indonesia (Voice of Indonesian Business Development, BPUI).

"In a session evaluating the cases, attended by a team of investigators, senior state prosecutors and all deputy attorneys general, it was agreed to intensify the investigation by naming Arifin and his accomplices suspects," he told a media conference at his office.

"The state prosecutors are still calculating the losses to the state," he added.

Muljohardjo failed to name the accomplices, arguing that the recent investigation was still limited.

He said that before the suspect in the case was named, state prosecutors did not have the power to intensify the investigation to encompass other names connected to the case.

Prosecutors have investigated the BPUI case over the past two months and named former minister of finance Ali Wardhana as a suspect in a US$110 million graft case at the company where he is president commissioner.

Many executives of BPUI and Medco group, including Arifin's brother Hilmi Panigoro, have been questioned.

Medco's still has debts with BPUI amounting to $77 million, which will fall due in December 2001.

Arifin, who is one of the most vocal opponents of the embattled President Abdurrahman Wahid, has repeatedly denied there was anything criminal in the deal with BPUI, saying it was purely business.

Arifin, however, has not been summoned for questioning.

Late attorney general Baharuddin Lopa had repeatedly disclosed his plan to summon Arifin and House Speaker Akbar Tandjung from the Golkar Party.

Reports allege that Akbar was involved in a graft case involving the alleged misuse of non-budgetary funds belonging to State Logistics Agency (Bulog) in his capacity as Golkar chairman to win the last general election in 1999. (bby)