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.