Bob Hasan arrested again on graft charges

JAKARTA (JP): Timber tycoon Mohammad "Bob" Hasan will spend another 20 days behind bars after the Attorney General's Office announced on Monday his arrest for his alleged mishandling of US$84 million provided for export promotion.

Bob, a golfing buddy of now ailing former president Soeharto, should have taken a breath of fresh air tomorrow Tuesday, the day when his arrest as a suspect in a $87 million fraud concerning a government contract was due to end.

Spokesman for the Attorney General's Office, Yushar Yahya, said that Bob's second straight period of detention is designed to facilitate the investigation into the graft allegation filed by the Association of Indonesian Wood Panel Producers (Apkindo). Bob was the organization's chief patron when the case is said to have occurred in 1997.

The arrest was announced while state prosecutors were questioning Bob over the Apkindo case and the irregularities found in the government contract.

Bob was named a suspect in the Apkindo case on June 16 together with Apkindo executive board chief Tjipto Wignjoprajitno. The allegedly mishandled funds came from the monthly dues of Apkindo's 111 members.

State prosecutors said the money was supposed to fund export promotion abroad in 1997, including Japan, where wood panel products were sold to local timber company Nipindo. Bob owns 95 percent of Nipindo's shares.

Apkindo members believe that Bob has swindled $2.5 million of the promotion fund.

The rest of the money was deposited in the now defunct Bank Umum Nasional, which was also partly-owned by Bob.

Bob, who briefly served as minister of industry and trade, was detained on March 28 as a suspect in irregularities found in a project to undertake aerial mapping and airborne radar imaging of the country's forestry resources.

Commenting on his second arrest, Bob said he would not challenge the decision taken by the Attorney General's Office.

"I abide by the law," Bob said. (bby)