Company executives implicate KPU chief
Ridwan Max Sijabat, The Jakarta Post, Jakarta
Six executives of an insurance company testified here on Thursday against General Elections Commission (KPU) chief Nazaruddin Syamsuddin in his graft trial at the Anticorruption Court.
They confirmed that their company, PT Bumi Putra Muda 1967 (Bumida), was party to a business deal worth Rp 14.8 billion (US$1.48 million) with the commission without any public tender to win the project, but had to reduce its value by 34 percent.
"Bumida was appointed to provide an occupational accident scheme worth Rp 14.8 billion for 5.7 million election workers during the 2004 general elections. The company was appointed not through public bidding but directly," the company's director of marketing and technical affairs Julian Noor told the court.
He and his five colleagues are among 56 witnesses scheduled to testify in Nazaruddin's trial on charges of corruption and power abuse over the insurance project and the collection of kickbacks from companies that supplied electoral materials to the KPU.
Julian said the direct appointment of Bumida to handle the insurance project was based on a memorandum of understanding signed by Nazaruddin and Bumida president director Achmad Fauzi Darwis.
Julian also confirmed that his company returned 34 percent, or Rp 5 billion, of the total premium at the request of KPU treasurer Hamdani Amin through Bumida agent Mualim Muslih.
"The amount was in line with the KPU's request, but I knew about the reduction from Mualim's note to the management," he said, adding that had not sought any confirmation from the elections commission because he was confident in Mualim's credibility and professionalism.
Julian said Hamdani had asked for the reduction through Mualim by telephone on July 7 last year, and the latter had handed over to Hamdani funds of more than Rp 5 billion a week later.
"But, so far, we have not yet obtained a receipt for the funds (from the KPU)," he said.
Bumida president Achmad Fauzi Darwis confirmed Julian's statements, but denied making direct contact with KPU officials or staff in the insurance deal.
"We rely on Pak Mualim Muslih and Sri Aryanti in arranging the scheme. The two are credible agents and it would not be ethical for us to engage in direct communications with our clients," he said.
Bumida's finance division head Nurhayati gave a similar testimony at the trial, saying the project was effective for five months from June through October 2004, covering more than 5.7 million KPU members and election workers nationwide.
In response, Nazaruddin made no objection to the six witnesses' testimonies.
The panel of judges adjourned the trial, which was attended by Nazaruddin's wife Nurnida, daughter Amalia and KPU member Chusnul Mariyah, until next week to hear statements from other witnesses.
In a previous court hearing, KPU secretary-general Sussongko Suhardjo admitted that the Rp 5 billion, collected as a kickback from the insurance company, had been distributed to all KPU members, including Nazaruddin and his deputy Ramlan Surbakti and current justice minister Hamid Awaluddin.
Prosecutors have demanded that Sussongko be sentenced to three years' imprisonment and fined Rp 50 million in the same corruption case.