Sat, 03 Jul 1999

Former ministers testify in Goro corruption scandal

JAKARTA (JP): Former finance minister Mar'ie Muhammad and former state minister/state secretary Moerdiono testified on Friday in the Goro corruption case at the South Jakarta District Court.

Dressed in a green batik shirt and dark trousers, Mar'ie, known as "Mr. Clean", appeared nervous when delivering his testimony.

He apologized to the court for his anxiousness.

"I'm sorry your Honor, as it is my first time giving testimony. It was my first time diginiin (to be treated like this time)," Mar'ie said, after presiding judge Jalius Amin told him to relax.

During the session, Mar'ie, who chairs an independent corruption watch body, the Indonesian Transparency Society, repeatedly prompted smiles and laughter from the judges, prosecutor, lawyers and spectators.

Moerdiono's appearance also triggered laughter, especially when he asked the presiding judge's permission to shake hands with the judges and lawyers.

"Am I allowed to shake hands with the judges... and the lawyers?" he asked in his characteristic slow manner before leaving the courtroom.

The two were appointed Cabinet ministers by former president Soeharto, whose son was named a suspect in the corruption scandal which has inflicted losses estimated at Rp 95 billion to the state.

Mar'ie testified that an exchange land deal between the State Logistics Agency (Bulog) and a wholesale firm PT Goro Batara Sakti was not conducted through an open tender, as the firm had been appointed by then president Soeharto.

"Of course the president's appointment was higher than a ministerial decree," he said.

He said a finance ministerial decree required a land exchange deal worth more than 10 billion to be carried out through an open tender with presidential approval.

"I did not approve the land exchange deal. I just passed on Bulog's proposal to the State Secretariat to obtain approval, since Bulog said the deal was approved by the president."

The indictment statement said Goro's former president, Ricardo Gelael, along with Soeharto's youngest son Hutomo "Tommy" Mandala Putra, Goro's former president commissioner, and Bulog's former chief Beddu Amang, were charged with corruption of Rp 95 billion in the land exchange deal.

Tommy was tried in a separate courtroom on Friday, while Beddu's indictment was dropped by the court. President B.J. Habibie refused the prosecutor permission for Beddu, who is a member of the People's Consultative Assembly (MPR), to be questioned.

Mar'ie said he did not know whether the deal had caused state losses.

He said he did not know or have any relationship with the defendant, Ricardo.

"I just know Ricardo here and now (in the courtroom). Maybe we met at a wedding party. I don't remember. But, I could say here that we (his ministry) never contacted private companies for any deals."

He said he knew Bulog exchanged its 50-hectare warehouse complex in Kelapa Gading for some 150-hectares of land in Marunda. Both areas are located in North Jakarta.

"But I did not know details of the deal. I just knew about the administrative process at the beginning of the deal."

Moerdiono's testimony was marked by a consistent inability to recollect events surrounding the exchange. To prosecutor D. Munthe he repeatedly replied: "Sorry, I forget."

But when Munthe showed Moerdiono a memorandum from Beddu which stated that the land deal had been discussed with Soeharto and Moerdiono, the former minister acknowledged the discussion.

"But I don't remember if Ricardo or Tommy had visited me to discuss the exchange deal. It should be checked in the guest book at the State Secretariat."

He said the president, through the State Secretariat, approved the land exchange deal based on a suggestion from the finance minister Mar'ie.

But Moerdiono acknowledged that final responsibility for such a deal was with the president.

More witnesses are set to provide testimonies on Wednesday in the corruption case.(jun)