Bob Hasan queried over US$2b forestry fraud
Bob Hasan queried over US$2b forestry fraud
JAKARTA (JP): Business tycoon Mohamad "Bob" Hasan was
questioned at the Attorney General's Office on Wednesday over his
alleged involvement in a Rp 15 trillion (about US$2 billion)
fraud of forestry funds.
Speaking to reporters after two hours of questioning, Hasan
acknowledged that he borrowed reforestation funds from the
government but denied any wrongdoing.
Hasan, a close friend of former president Soeharto, declined
to mention the amount he borrowed, but said he had returned Rp 11
billion.
He said he used the funds to invest in industrial timber
estates covering 400,000 hectares in East Timor and East Nusa
Tenggara.
The investigation is based on findings made by an audit team
of the Ministry of Forestry and Plantations and Development
Finance Comptroller (BPKP). The other names allegedly involved in
the fraud include Soeharto's son Hutomo "Tommy" Mandala Putra,
his eldest daughter Siti Hardijanti "Tutut" Rukmana, his half
brother Probosutedjo and Prajogo Pangestu and Ibrahim Risjad, who
are also Soeharto's friends.
Based on the team's findings, the state suffered losses
totaling Rp 15 trillion due to the misuse of reforestation funds
and unpaid reforestation fees and forest royalties during 1994 to
1999.
The alleged fraud in reforestation funds alone reached a total
of Rp 1.6 trillion.
Timber companies, in addition to royalties, are required to
pay reforestation fees to the government, which collects the
funds for reforestation purposes. A company, which is developing
an industrial timber estate, is allowed to borrow reforestation
funds, but the money is often used for other purposes.
The audit team was formed by former minister of forestry and
plantations Muslimin Nasution to fight against corruption,
collusion and nepotism (KKN).
Widodo Sutoyo, a spokesman for the ministry, said here on
Wednesday that Hasan allegedly misused $87 million and Rp 207.8
billion in reforestation funds respectively through his companies
PT Mapindo Parama and PT Surya Hutani Jaya. At the current rate,
the total funds allegedly misused by Hasan's companies could
reach Rp 851 billion.
Mapindo was paid by the government with reforestation funds
because the forestry mapping was part of the reforestation
program.
Widodo said Mapindo might have marked up the contract as no
open tender preceded it.
He did not mention how much the government should have paid,
but added that Mapindo's work was of low quality.
"Mapindo used out-of-date technology in its mapping work for
the ministry," he said.
Last year, Mapindo faced similar charges by the Association of
Indonesian Forest Concessionaires (APHI) for allegedly marking up
a $176.94 million aerial photography project of APHI members.
According to APHI, it paid Mapindo $2.42 per photographed
hectare, whereas in comparison, state forestry firm Perum
Perhutani used another firm's service which charged only $1.80
per photographed hectare.
Soeharto's youngest son Tommy allegedly misused Rp 23 billion
of the funds.
"We've delivered our findings to the Attorney General's Office
and now it's their turn to investigate this matter," Widodo
said.
Widodo reported that Tommy allegedly misused Rp 23.3 billion
in forestry funds through his company PT Gatari Hutama Air
Services.(01/03)