Former official indicted for graft

JAKARTA (JP): A former president of city-owned slaughter house operator PD Dharma Jaya, has been indicted at the Central Jakarta District Court for involvement in a Rp 1.1 billion (US$132,800) corruption scandal.

Prosecutor Hermut Achmadi said the defendant, identified as Susanto, conspired with Fahri Azis, president of PT Primantara Citra Media, in the purchase of cows from Australia between July 14, 1997 and Aug. 31, 1997.

Achmadi said on Wednesday under the conspiration, the defendant secured a loan of Rp 1.7 billion from city-owned Bank DKI to buy 1,427 cows from Australia.

He said 800 of the cows were resold to PT Primantara at Rp 1.05 billion and the other 621 went to several other firms. Six of the cows died at a stable in Serang, West Java.

"PT Primantara only paid Rp 100 million, while the remaining Rp 950 million has yet to be paid."

PT Primantara had attempted to make the remaining payment, but the bank check was dishonored, he said on Wednesday.

He said the city-owned firm suffered losses amounting to Rp 1.1 billion because of the marked up price and PT Primantara's debt.

Susanto was charged 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, he said.

Susanto's lawyer Marlini Siregar said: "My client was brought to the court because PT Primantara could not pay for the cows. It's purely a business matter and has nothing to do with corruption".

She said Fahri, who was being tried separately in the same court, had admitted he could not pay his debt.

Susanto and Fahri are not held in custody. (jun)