Sat, 29 Aug 1998

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)