Beddu named a suspect in new scam
Beddu named a suspect in new scam
Abdul Kholik, The Jakarta Post, Jakarta
Amid the nationwide drive to fight corruption, another huge case
involving Rp 841 billion (US$99 million) has surfaced linked to
State Logistics Agency (Bulog) officials and several
businesspeople.
"We have named seven suspects, namely three former Bulog
officials and the directors of four companies, in the misuse of
Rp 841 billion in animal feed subsidy funds," National Police
chief of detectives Com. Gen. Erwin Mappaseng said here on
Wednesday.
One of the three suspects from Bulog is its former chief Beddu
Amang, who served as its chairman from 1995 to 1998, Erwin said.
Beddu, 67, had been convicted by the South Jakarta District
Court that jailed him for two years on Nov. 5, 2001 for his
involvement in a land swap deal causing some Rp 20 billion in
losses to the state.
The two other Bulog suspects were identified only by the
initials MA, a former deputy head of the agency's domestic
purchasing division, and MI, a former deputy head of foreign
purchasing.
The four businesspeople also charged were those from PT
Charoen Phokphand, PT Java Comfeed, CV Cibadak, and CV Teluk
Intan.
Both PT Charoen Phokphand and PT Java Comfeed are owned by
foreign investors, while the two others are local companies. PT
Charoen Phokphand, belonging to a Thai conglomerate, holds a 99
percent market share of the Indonesian animal feed industry.
"We are investigating the case following a report received a
month ago," Erwin said.
He promised to issue arrest warrants after police
investigators obtained more evidence against the suspects.
Sr. Comr. Marshudi, the National Police deputy chief of the
graft division, said the graft started in 1997 when the
directorate general of animal husbandry asked the government to
provide subsidies for domestic animal breeders following the
sharp rise in animal feed prices.
At that time, the economic crisis had started to plague
Indonesia and the breeders could not afford to buy imported
animal feed, he said.
So, the government asked Bulog to import raw materials for
animal feed, in coordination with the directorate general of
animal husbandry and sold to breeders at cheap prices, Marshudi
added.
"But Bulog instead let the four private companies handle the
distribution and the sales. These companies sold the animal feed
for more than Rp 3,000 per kilogram, much higher than the amount
set by the government of only Rp 1,200 per kilogram."
He said the state lost Rp 841 billion due to the illegal
practice but did not reveal how much money had been recovered.
"We have interrogated all the suspects. Today (Wednesday), we
questioned Beddu about his role in the scam but of the 25
questions we asked, none were answered. He simply said, 'I don't
know'," said Marshudi.
Beddu was disqualified by the General Elections Commission
(KPU) as a legislative candidate for the Regional Representatives
Council (DPD) for South Sulawesi in 2004.
Marshudi said the police would charge the suspects with
violating the anticorruption law as well as the Criminal Code.
Corruption is not new to Bulog, the country's food regulator
and distributor. The agency served as a cash cow for politicians
during former strongman Soeharto's regime.