Big names probed for alleged abuse of forestry funds

JAKARTA (JP) A team of seven prosecutors from the Attorney General's Office are investigating the alleged misuse of reforestation funds by five major figures linked to former president Soeharto.

Minister of Forestry and Plantations Nur Mahmudi Isma'il said on Wednesday the misuse of reforestation funds totaling some Rp 784 billion reportedly involved the former president's close friend Mohamad "Bob" Hasan, his eldest daugther Siti Hardijanti "Tutut" Rukmana, his half brother Probosutedjo and his other friends Prajogo Pangestu and Ibrahim Risjad.

"The prosecutors will prove the allegations and decide whether the culprits should be charged under criminal or civil law," he said on the sidelines of a hearing with House of Representatives Commission III for agriculture and food affairs.

The report said Prajogo and Soeharto's eldest daughter Tutut, who controlled some stakes at industrial forest estate developer PT Musi Hutan Persada in South Sumatra, had allegedly manipulated particular documents regarding the size of the company's 193,500 hectares in order to obtain more reforestation funds. Prajogo and Tutut allegedly misused about Rp 346.87 billion of reforestation funds.

The report alleged that Probosutedjo was given special treatment by then president Soeharto and the minister of state secretary in obtaining more reforestation funds. Probosutedjo allegedly manipulated some Rp 144.40 billion of reforestation funds he received through his industrial forest owner PT Menara Hutan Buana, which controls about 268,885 hectares of area in South Kalimantan.

The report also alleged that Soeharto's golf buddy, Mohamad "Bob" Hasan, had allegedly misused Rp 207.81 billion in reforestation funds he received for his industrial forest estate PT Surya Hutani Jaya.

Businessman Ibrahim Risjad allegedly used the reforestation funds of Rp 85.36 billion assigned by the government for his industrial forest developer PT Aceh Nusa Indrapuri to, among other things, purchase space at the Menara Batavia building, according to the report.

Developers of industrial forest estates are allowed to obtain reforestation funds from the government to finance their forestry projects as cheap loans. But many used the funds for other business purposes and some even marked up the size of their estates to get larger funds.

Nur Mahmudi said that in line with the ministry's commitment to curb corruption and other misconduct in the forestry sector his office had temporarily suspended 46 forest concession contracts due to alleged flawed documents and improper management by the logging operations.

"They may resume operation after our investigation has proven that they did not violate any regulations," he said.

Nur Mahmudi added that his office had also considered investigating plantation firm PT Tanjung Lingga in Central Kalimantan, which is owned by Abdul Rasyid, a member of the People's Consultative Assembly, over allegations of illegal logging.

"Illegal logging practices have definitely taken place in the plantation area. We have received some reports about it. But we have to prove it first before making any decisions," he said.

The management of Tanjung Lingga was recently accused by local environmental group Telapak Indonesia for threatening its director Ruwindrijarto and an expert from the Environmental Investigation Agency, Faith Brunskill, during their visit to the plantation area in January.

Tanjung Lingga's Abdul Rasyid has strongly denied the accusation and has instead charged the two environmentalists with trespassing on his property. (cst)