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.