Asmaning reveals web of embezzlement

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)