Bob Hasan told to return $2.04b in forestry fees
JAKARTA (JP): A breakaway reform group of the Indonesian Forestry Society (MPI) is demanding that timber tycoon Mohamad "Bob" Hasan return US$2.04 billion he collected in forestry fees from 1991 to 1997.
The chairman of MPI Reformasi's investigation team Agus Miftach said on Monday that Hasan -- a crony of former president Soeharto -- also collected commissions, promotion funds and trading monopolies on plywood products. He also accused Hasan of gathering an estimated $8 billion from sawn timber, wood by- products, pulp and paper products, plus monopolies on aerial photography of forests and insurance.
Appointed chairman of MPI in 1991, Hasan resigned last March following his appointment as minister of trade and industry. The change in the government in May split MPI into two groups, one remaining loyal to Hasan and the other advocating reform.
Agus said his group had set up a team to recover the money, which Hasan allegedly has in banks in the country, as well as Singapore and Hong Kong.
MPI is an umbrella group for nine forestry-related organizations, including the Association of Indonesian Wood Panel Producers (Apkindo), the Association of Indonesian Concessionaires (APHI) and the Indonesian Saw Millers Association (ISA).
The old MPI and its association members have been criticized for alleged crony capitalism and grasping rent-seeking practices. Apkindo's monopoly was abolished in February under the government's agreement with the International Monetary Fund (IMF).
Agus said Hasan deposited about Rp 25 billion of MPI funds in Bank Muamalat, plus Rp 25 billion and Rp 800 billion respectively in Bank Bukopin and Bank Umum Nasional, which is now closed.
Agus said it was unclear if Hasan deposited the funds in his own name. He accused Hasan of using MPI funds to back his offshore loans.
MPI Reformasi chairman Sofyan Simbaton said that since early 1991, Apkindo had obliged all plywood companies, numbering about 112, to export only through its trading arms set up in various regions and under its export prices and quotas. He said it was done by government consent.
The trading firms collected commissions ranging from $6 to $20 per cubic meter depending on the export destination.
"Plywood producers have actually never known the actual prices paid by buyers overseas because only Apkindo's trading firms are authorized to deal with buyers," he said.
Export shipments and insurance were also arranged by Apkindo whereby Hasan's PT Karana Lines and Tugu Insurance played a major role, he said.
Exports to main markets such as Japan and South Korea were obliged to use Karana Lines which charged $2 per cubic meter, Sofyan said.
Agus said the team had set a target to recover at least 25 percent of the $2.04 billion by the end of this year.
"We plan to hire private detectives to investigate Hasan's deposits overseas and to find his right-hand man, Edward Anwar. We want to report our investigation to the Attorney General's Office, but we are hesitant because we doubt its independence."
Sofyan said recovered funds would be earmarked for companies under MPI and the rest would go to poor villagers to buy basic commodities.
"We will use the funds for forest rehabilitation programs and social programs for people living near forests."
He said the organization had met leaders of the Hasan-backed MPI to discuss the possibility of merging the two societies. (gis)