Former chief of Dolog Jaya tried for rice aid scam

JAKARTA (JP): Former head of the Jakarta Logistics Agency (Dolog Jaya) Ahmad Zawawi, was indicted at the North Jakarta District Court on Wednesday on corruption charges over the distribution of imported rice.

Arriving in a detention vehicle, Zawawi who has been detained at Salemba Penitentiary since March 29, appeared composed. The retired Army colonel, who wore a dark blue safari shirt and trousers, entered the courtroom at about 10 a.m.

Prosecutor Syafruddin said in his indictment that the 57-year- old defendant distributed 1,825 tons of subsidized rice to unlicensed distributing firms and youth organization Pemuda Kiara, causing Rp 3.8 billion (US$439,885) in losses.

"The defendant benefited himself, the firms and the youth organization between July and September last year."

He said the firms were discovered selling the rice -- set aside for the capital -- in other cities, including Bogor and Cirebon in West Java and Pontianak in West Kalimantan.

He said the rice was imported by the National Logistics Agency (Bulog) from China, Pakistan, Vietnam and Thailand for market operations, to help stabilize rice prices at the time.

"Because the rice sales outside Jakarta sparked prices here to escalate."

According to Syafruddin, the subsidized rice was sold to the firms at between Rp 1,700 and Rp 2,000 per kilogram. The firms then sold it to the public at between Rp 2,000 and Rp 2,500 per kilogram.

He said the firms, which managed to amass huge profits from the sales of the rice in Pontianak, included CV Alam Makmur, PD Hari-Hari, PD Daya Makmur, UD Lestari, PD Tunas Inti, CV Arly Indah and PT Indah Wasih.

Zawawi also received a "gift" of Rp 3 million via his secretary from H.T.A. Soleman, president of PT Fortuna Sejahtera, for the sale of 100 tons of rice to the unlicensed firm, he said.

The youth organization received profits of Rp 145 million after selling 1.8 tons of the rice, he said.

Syafruddin charged Zawawi under Article 1 (b) of Corruption Law No. 3/1971, which carries a maximum punishment of a life sentence or 20 years in jail and/or a Rp 30 million fine.

When presiding judge Sartono raised the issues to hand with the defendant, Zawawi repeatedly said he did not understand the charge, insisting that the indictment did not reflect his actions.

"It's not about whether it is true or not. It is just whether you understand or (do not understand) the indictment," Sartono said.

Accompanied by four lawyers led by Alamsyah Hanafiah, Zawawi finally said he understood the charge.

Lawyer Alamsyah said his client had acted according to his duties as Dolog chief.

"The state suffered nothing, since the subsidized prices, which were decided by the government, could not be calculated as state losses."

Alamsyah said the firms which bought rice from Dolog Jaya could sell it at any location in the country.

He asked the court to free the defendant from the Salemba Penitentiary and change Zawawi's status to one of city arrest.

Almasyah said a letter, signed by Bulog chief Rahardi Ramelan, his wife and the lawyers, guaranteed Zawawi would not attempt to flee the capital or destroy evidence.

"The defendant, who remains an expert staff member to the Bulog chief, would not escape since his income includes a pension salary drawn from the Army."

Judge Sartono is considering the lawyers' request. He adjourned the trial until next week to hear the lawyers' response statement. (jun)