Beddu gets 2-year prison term

Beddu gets 2-year prison term

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

The South Jakarta District Court sentenced on Monday former
chief of the State Logistics Agency (Bulog) Beddu Amang to two
years imprisonment for his involvement in a land swap deal
causing some Rp 20 billion (US$ 20.8 million) in losses to the
state.

Beddu, 65, was also ordered to pay back Rp 5 billion to the
state and a Rp 5 million fine.

"The defendant was proven guilty of committing corruption and
amassing wealth," said Judge Lalu Mariyun, who presided over the
hearing.

Beddu had violated Article 1 paragraph 1 of Anticorruption Law
No. 3/1971, he said.

The fact that Beddu had insisted on his innocence and that his
case had attracted nationwide attention were factors that were
not in his favor, he said.

Some mitigating factors, the verdict said, included that as
then Bulog chief, Beddu was in a difficult position, that he did
not enjoy the money from the crime and that he was an elderly
man.

Beddu, who looked serious and took notes during the hearing,
remained calm when Lalu presented the sentence.

After talking to the defendant, his lawyer Amir Syamsuddin,
told the court that his client would appeal.

"I am innocent, that's why I will appeal," he told reporters,
who surrounded him as soon as the trial was over.

Meanwhile, prosecutor Fachmi said that he would think over
whether to appeal considering that the sentence was too light and
that the verdict said the state lost only Rp 20 billion instead
of Rp 95.4 billion.

According to the verdict, Beddu had abused his authority as
Bulog chief by signing a Memorandum of Understanding (MoU) on a
land swap deal without following standard procedures as outlined
by the Ministry of Finance.

Beddu initially signed the MoU with PT Sekar Artha Sentosa on
Feb. 17, 1995. However, on Aug. 11, 1995, an MoU for the same
deal was made with PT Goro Batara Sakti. Hutomo "Tommy" Mandala
Putra, the youngest son of former president Soeharto, was then
the owner of both companies.

Tommy owned an 80 percent stake in PT Goro, while the rest
belonged to Ricardo Gelael, the company's then president
director.

Tommy and Ricardo had been tried at the same court for their
involvement in the case and were each sentenced to 18-months
imprisonment in September 2000.

Ricardo was released from Cipinang Penitentiary in East
Jakarta on Aug. 17. Tommy has been in hiding since the verdict
was handed down in November last year although the Supreme Court
overturned the court ruling on Oct. 1.

"As then Bulog chief, the defendant was guilty of signing the
MoU without offering it to other companies," Lalu said in a court
hearing attended mostly by journalists.

PT Goro, according to the MoU, would provide some 125 hectares
of land in an area in Bekasi in exchange for 48 hectares land in
Kelapa Gading, North Jakarta, belonging to Bulog.

The company later exchanged the land with 60 hectares of land
in Marunda, North Jakarta. Businessman Hokiarto, whose company
has been a partner of Bulog for years, was assigned to manage the
transaction.

Beddu approved Ricardo's request to underwrite a Rp 20 billion
loan from Bank Bukopin with Rp 23 billion in Bulog funds since PT
Goro did not have sufficient funds.

However, PT Goro gave Hokiarto only Rp 16.5 billion to
purchase the land as Ricardo took the rest. Hokiarto then asked
some Rp 32.5 billion from Beddu as the money from PT Goro could
only be used to buy some 20 hectares of land.

Beddu approved the request while asking Hokiarto to acquire
land up to 72.5 hectares.

"The defendant should know that the Minister of Finance's
regulations ban state institutions from giving funds to their
partners in a land swap deal," Lalu said.

The judge also asserted that the defendant was guilty of
manipulating his authority by permitting PT Goro to take over
some 16 warehouses of Bulog.

PT Goro, ironically, refused to pay the debt to Bank Bukopin.
The MoU was canceled in 1998 and Ricardo sold PT Goro to Inkud
cooperative for Rp 76 billion.

Inkud later paid Rp 46 billion back to the state.

The panel of judges decided that the state only incurred a
loss of Rp 20 billion, instead of Rp 95.4 billion as the
indictment previously stated, considering that part of the money
and some land had been returned to Bulog.