Big names probed for alleged abuse of forestry funds
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)