Bob Hasan accused of marking up project

Bob Hasan accused of marking up project

JAKARTA (JP): Timber tycoon Mohamad "Bob" Hasan will face
scrutiny again when the Association of Indonesian Forest
Concessionaires (APHI), which he chaired until last March,
questions him over a US$176.94 million aerial photography project
next week.

APHI vice chairman Abdul Fattah DS said yesterday that Hasan,
a long-time crony of former president Soeharto, had allegedly
marked up the project.

"We have invited him for questioning next week. He'll have to
take responsibility if APHI finds anything wrong in the project.
APHI has set up a clarification team to settle the matter," he
said.

During his tenure in APHI, Hasan assigned PT Mapindo Parama, a
company he helped establish, to handle the aerial photo project
for the association's members.

The project started in 1989 and ended in 1997, with a total of
68.74 million hectares of forest concession land photographed.

APHI members paid Mapindo $2.49 per hectare photographed.

"The price was too expensive. In comparison, (state forestry
firm) Perum Perhutani paid only $1.80 per hectare in its aerial
photo project which was handled by another firm," he said.

"Several APHI members have also complained that Mapindo never
photographed their concession areas."

Concessionaires are required to have their areas photographed
in order to have their annual working plan approved by the
Ministry of Forestry and Plantations and their logging contracts
extended.

Separately, APHI's new chairman, Adi Warsita Adinegoro,
pledged yesterday the association would provide more room for
cooperatives and small companies to enter the forestry industry.

Adi said APHI members were willing to work with cooperatives
and small companies in handling logging activities, land and
river transportation and planting.

APHI members would also help them strengthen their capital and
improve human resources, he said.

"We also won't hesitate to sell some of our shares to them to
help meet our qualifications." (gis)