Wed, 02 Oct 2002

Five-year jail term sought for Rahardi

Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta

State prosecutors demanded on Tuesday a five-year prison term for former chief of the State Logistics Agency (Bulog) Rahardi Ramelan for alleged graft, ignoring public suspicion that there was a political aim behind the misuse of state funds.

The prosecutors said Rahardi had abused his power by deciding to funnel Rp 62.9 billion (US$6.98 million) of Bulog non- budgetary funds in 1999, an offense which could lead to a Rp 50 million fine or three months in jail, paying another Rp 22.9 billion in compensation for the state's losses, or otherwise spending an additional two years in jail.

"We have convincingly proved that the defendant had amassed wealth for his own interests and others or for a particular institution, had abused his power to do so and had inflicted losses to the state," chief prosecutor Kemas Yahya Rahman told the hearing presided over by judge Lalu Mariyun.

The demand is heavier than the four-year imprisonment sought for House of Representatives Speaker Akbar Tandjung, who received Rp 40 billion of the funds.

Akbar was found guilty of embezzling the funds and was sentenced to three years in jail. Still a free man, Akbar has filed an appeal but there are calls for his resignation from both the House and some leading members of the Golkar Party he currently chairs.

The prosecutors found that Rahardi, during his tenure between 1998 and 1999, had channeled Rp 40 billion to Akbar for a charity project and Rp 10 billion to former defense minister Wiranto for security during the elections in 1999 as instructed by then president B.J. Habibie.

Within Rahardi's personal memos, another Rp 9.5 billion was used for various reasons not concerning Bulog's tasks and functions, such as to pay presidential guards, the athletes of the national swimming association he chaired, to build a Science Center, to cover the debts of retail chain Goro Batara Sakti, owned by former ruler Soeharto's son Hutomo "Tommy" Mandala Sakti, and to finance seminars.

The prosecutors failed to obtain documents on the use of the remaining Rp 3.3 billion.

They underlined Rahardi's refusal to wipe out non-budgetary funds and to record all transactions in a journal as advised by the Development and Finance Control Agency (BPKP).

In a bizarre twist, the Rp 40 billion was returned to the state by Akbar's co-defendant Winfried Simatupang, and that event was soon followed by the prosecutors' statement that they had no intention to find out where the money had been channeled.

Rahardi's lawyer, Trimoelja D. Soerjadi, said the trial had been contrived in such a way as to save Golkar, Akbar and Habibie. Many believe the Rp 40 billion was used to bankroll the 1999 Golkar campaign.

"Habibie, Wiranto and others named as the receivers of the money should also be charged if the prosecutors want to show some consistency," he told reporters.

The prosecutors strengthened their arguments by using statements from expert Ali Hatomi, who said that even a president had no right to tell a Bulog chief to disburse the agency's funds for activities not related with the agency's interests.

The prosecutors said that Rahardi's politeness in court was a mitigating factor.

"However, the defendant failed to support the campaign for good governance without the use of corruption, collusion and nepotism, and he failed to show remorse or be a role model for subordinates and the public."

Rahardi, who was wearing a pale green suit, said he would prepare his defense with his team of lawyers for the next hearing slated for Oct. 22.