Bulog suffers losses in Goro deal: Auditors

JAKARTA (JP): Two government auditors told the South Jakarta District Court on Wednesday that the State Logistics Agency (Bulog) suffered significant losses in its land exchange deal with wholesaler PT Goro Batara Sakti.

The auditors, Mampan Manalu of the Supreme Audit Agency (BPK) and Dedi Iriantono of the Development Finance Comptroller (BPKP), testified as experts in the trials of Goro's former president commissioner, Hutomo "Tommy" Mandala Putra, and the firm's former president, Ricardo Gelael, respectively.

The two auditors' testimonies contradicted testimony given in earlier court sessions by Bulog's former chief Beddu Amang, who insisted Bulog suffered no losses.

Manalu, who audited Bulog in the period between October 1997 and November 1997 and between March and April last year, said that he found the agency suffered losses of about Rp 65 billion (US$9.2 million) and $400,000.

"We consider the land exchange deal violated existing procedures which then caused the losses," Manalu reiterated.

The BPK auditor said the same thing in a court hearing against Ricardo on Friday.

Under the land deal, signed in August 1995, Bulog was to exchange its 50-hectare warehouse complex in Kelapa Gading for a 71-hectare plot in Marunda to be provided by Goro. Both plots are located in North Jakarta.

Manalu said Rp 13 billion of the losses was incurred through Goro's demolition of Bulog's 11 warehouses in Kelapa Gading.

He said Bulog suffered potential losses of Rp 52 billion since the agency spent money to buy the land in Marunda.

The $400,000 was spent by the agency to rent other warehouses, owned by businessman Hokiarto, a witness in the case, since it could no longer use the warehouses demolished by Goro, he said.

Manalu reiterated that the exchange land deal should have been conducted based on a minister of finance decree even though Goro had been approved for the deal by the then president.

"The decree is still valid although the (then) president (Soeharto) had agreed to the exchange land deal," he said.

According to the decree, the land deal should have been carried out through an open tender, while substitute land should have been first provided by the firm.

In response to Manalu's statements, Tommy said he doubted the capacity of the auditor as an expert witness in the trial.

"The witness did not see Bulog's financial report. He just found the losses from letters of the Bulog inventory department," the youngest son of the country's former president Soeharto said.

Meanwhile, Dedi of BPKP similarly said the exchange deal violated prevailing legal procedures and therefore caused Bulog losses.

In testifying, Dedi mentioned several names, including Beddu, Tommy, Ricardo, Hokiarto and former Bulog chief Ibrahim Hasan, whom he said was involved in the deal.

Both Manalu and Dedi said that Bulog, according to procedure, was not allowed to lend money, totaling Rp 52 billion, for the appropriation of the Marunda land, part of which was also owned by Hokiarto.

Ricardo also doubted the capacity of Dedi as an expert witness in the trial.

Ricardo and his lawyers presented expert witness Herman Yuwono on Wednesday.

Herman, a public accountant, told the court the losses might have been based on a financial report issued by Bulog.

"But if the debts have been returned, they cannot be identified as losses," he added.

Ricardo and Tommy were indicted along with Beddu Amang for corruption related to the land deal. The deal allegedly cost the state Rp 95 billion in losses.

The court will question defendants Ricardo next Monday and Tommy two days later. (jun)