Asmaning reveals web of embezzlement
JAKARTA (JP): A former chairman of the Association of Indonesian Wood Panel Producers (Apkindo) admitted on Tuesday that some funds of the association were misused by the Indonesian Loggers' Association chaired by timber tycoon Muhammad "Bob" Hasan, an official at the Attorney General's Office said.
Attorney General's Office spokesman Muljohardjo said that Asmaning Tjipto Wignjoprajitno, former Apkindo chairman, revealed the facts during an investigation over the US$84 million corruption case which places both Bob and Asmaning as the primary suspects.
"The funds were used to pay for the project of shooting aerial photographs of land concessions by PT Mapindo Parama, a company owned by Bob Hasan," he told journalists at his office.
Bob Hasan, who briefly served as minister of industry and trade, was Apkindo's chief patron when the alleged offense took place in 1997.
In early June, Apkindo members filed the graft allegation with the Attorney General's Office. The suspicious transactions, amounting to $84 million, were raised from the monthly dues of Apkindo's 111 members.
State prosecutors said the money was supposed to be used to finance Apkindo's overseas export promotion in 1997, including exports to Japan, where wood panel products were sold to local timber company Nipindo. Bob owns 95 percent of Nipindo.
Apkindo members allege that Bob, a former golfing partner of former president Soeharto, misappropriated $2.5 million of the promotion funds.
The rest of the money was deposited at the now-defunct Bank Umum Nasional, which was also partly owned by Bob.
Bob is currently facings court proceedings over irregularities found in a government project which involved PT Mapindo.
Muljohardjo said that Tuesday's questioning of Asmaning was focusing on the use of Apkindo funds.
In contrast to the statements made by prosecutors, after the questioning Asmaning told journalists that there were no irregularities in the use of Apkindo funds, claiming that the money was used to help finance the businesses of its members, and for the provision of scholarships.
His lawyer, Augustinus Hutajulu, said that his client, as the association's chairman, was not involved in policy decisions regarding the funds' disbursement.
"The policies were made by the board of directors and were then realized by the chairman, as the executive of the association," he said.
A source close to the investigation said on Tuesday that the accountability report of the association's balance sheet does not correspond with it's funds disbursement.
The source, who wished to remain anonymous, said that during the investigation, the prosecutors found several irregularities in the operation of the non-profit association.
"Some Rp 21 billion ($2.2 million) from Rp 47 billion, provided for a reforestation project in East Timor, was taken by Bob Hasan to finance his paper factory PT Kiani Kertas," the source said.
The source added that $7 million of Apkindo's investments in Hong Kong-based Sumitomo Bank were used to revive Bob's Nipindo, which at that time was experiencing financial difficulties.
The state prosecutors intend to seize a 70-hectare plot of land in Cibinong, West Java, believed to have been bought by Bob using Apkindo's money.
The prosecutors have already seized fixed deposits and other accounts valued at more than $52 million and Rp 3 billion ($315,000), as well as 20 sedans and mini vans, which had reportedly been bought using Apkindo's money but were in fact used by the two suspects as their personal automobiles. (bby)