Businessman stands trial for graft in Bulog case

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

The corruption trial of businessman Hokiarto began on Monday at the South Jakarta District Court for an alleged land scam that caused the state to suffer Rp 95.4 billion in losses.

Althought Hokiarto is being tried for the same land scam which Hutomo "Tommy" Mandala Putra, the youngest son of former president Soeharto, was earlier tried, the indictment read on Monday made no mention of Tommy.

According to the indictment, former State Logistics Agency (Bulog) chief Beddu Amang and Hokiarto applied for a loan from state Bukopin Bank in order to buy a plot of land in Marunda, North Jakarta, for PT Goro Batara Sakti (PT GBS), which was owned by Tommy and businessman Ricardo Gelael.

The indictment, presented by chief prosecutor Imanuel Zebua, did not say when the loan application was made or why PT GBS wanted to purchase the land.

Bukopin approved the loan, which, unusually, was guaranteed by Bulog's Rp 23 billion account, and disbursed Rp 20 billion to Hokiarto.

The defendant allegedly then placed some Rp 15.6 billion of the money into a personal account.

On July 19, 1996, Hokiarto and PT GBS signed a working contract. Hokiarto was required to acquire 60 hectares of land for PT GBS using Rp 20 billion from the bank.

On several occasions later in the year, Hokiarto requested additional funds totaling Rp 32.25 billion from Beddu, who agreed to the request.

All of the money was to be used to buy 60 hectares of land in Marunda, North Jakarta.

"But the defendant violated the contract. He only acquired several hectares," Imanuel charged.

He said the defendant was responsible for the state losses of Rp 52.5 billion.

The defendant is being charged under Law No. 3/1971 on corruption, which carries a maximum penalty of life in jail.

Tommy and Ricardo were tried in 1999 on the same charges. Tommy was president commissioner of PT GBS, which wanted to trade the land in Marunda for a plot of land Bulog owned in Kelapa Gading, North Jakarta, for its main offices. According to the indictment, the land scam had caused the state to suffer Rp 95.4 billion in losses.

Both Tommy and Ricardo were acquitted by the South Jakarta District Court. However, the Supreme Court overturned the verdict and sentenced the two men to 18 months in jail.

Ricardo served his sentence but Tommy, after his request for a presidential pardon was rejected, went on the run and remained a fugitive for over a year.

Last month, the Central Jakarta District Court sentenced Tommy to 15 years in jail for orchestrating the murder of Supreme Court justice M. Syafiuddin Kartasasmita, one of the justices who sentenced him in the earlier case, the illegal possession of firearms and flight from justice. Tommy has decided not to appeal the verdict.

Beddu was sentenced to two years in jail last year by the South Jakarta District Court for graft. The Jakarta High Court is currently processing his appeal.