Bulog suffered no losses, Beddu Amang reiterates

JAKARTA (JP): The former chief of the State Logistics Agency (Bulog), Beddu Amang, again told the South Jakarta District Court on Friday the agency suffered no losses in the land exchange deal with private firm PT Goro Batara Sakti.

His testimony did not differ from what he told the court on Wednesday in the trial of another suspect in the same case.

Beddu reiterated that the agency reaped profits after it canceled the land exchange deal with the wholesale firm in June 1998.

Bulog's former chief testified on Friday as a witness in the trial of Ricardo Gelael, Goro's former president.

Beddu testified on Wednesday in the trial of Hutomo "Tommy" Mandala Putra, the youngest son of former president Soeharto and Goro's former president commissioner.

Beddu, who is a member of the People's Consultative Assembly, could only be summoned to testify as a witness after prosecutors secured a letter of approval from President B.J. Habibie.

Beddu was earlier indicted along with Tommy and Ricardo for corruption related to the land deal, which allegedly caused the state losses of Rp 95 billion (US$14.17 million), as reported by the Development and Finance Control Agency in November.

Beddu's name, however, was dropped from the indictment because prosecutors had not obtained Habibie's permission to prosecute Beddu. The president must give his approval before cases against members of the Assembly can be pursued.

The land deal signed in August 1995 stated that Bulog would exchange its 50-hectare warehouse complex in Kelapa Gading for a 71-hectare plot in Marunda to be provided by Goro.

Both properties are located in North Jakarta.

However, part of the land in Marunda was purchased by Bulog for Rp 32 billion, while the remainder was bought by Goro with a Rp 20 billion loan secured from Bank Bukopin. The loan was guaranteed by Bulog with a Rp 23 billion deposit.

Beddu said on Friday last year's cancellation of the land exchange deal benefited the agency.

Besides still owning the land in Kelapa Gading, the value of the Marunda plot at the time of the deal's cancellation had doubled to Rp 165,000 per square meter from the original Rp 80,000 per square meter, he said.

Beddu did say, however, that Bulog received a warning letter in April last year from the Supreme Audit Agency stating the land exchange deal violated a decree issued by the Ministry of Finance.

"But the decree was not valid since the Goro deal had been approved by president (Soeharto)," he said.

The decree states that a land exchange worth more than Rp 10 billion should be conducted through an open tender participated in by at least five companies.

Beddu said he had met with Soeharto, who was accompanied by then state minister/state secretary Moerdiono, to discuss the deal before signing the agreement with Tommy and Ricardo.

Tommy, who was scheduled to testify as a witness in Ricardo's trial on Friday, failed to appear.

Prosecutor D. Munthe said he received a letter from Tommy's lawyer stating that Tommy could not attend the trial on Friday because he was visiting his father, who is currently being treated at Pertamina Hospital. (jun)