Five-year jail term sought for Rahardi

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.