Former State Secretary questioned

Wed, 27 Jun 2001, 00:00 WIB | Source: JP

JAKARTA (JP): The Attorney General's Office questioned former
state secretary Moerdiono on Tuesday in relation to a corruption
case involving the dredging of the Mahakam River in East
Kalimantan, which inflicted Rp 39 billion (US$3.9 million) in
losses on the state.

Moerdiono, who arrived at the office's oval building at 9:45
a.m., testified before prosecutors D. Munthe and Suhardjono
regarding the alleged involvement of Eddy Susanto, Hendrawarman
Siregar, Almaden Lubis and Poedji Siswanto, Antara news agency
reported.

The four businessmen have been suspected of marking up the
value of a contract signed by the Indonesian government and Hong
Kong-based Pacific Associated Inc. in October 1971 to dredge the
river.

The Supreme Audit Agency (BPK), which reviewed the project in
December 1999, identified irregularities in the disbursement of
Rp 27 billion from the Ministry of Transportation to finance the
project.

According to Indonesian Corruption Watch (ICW), the fund was
disbursed based on a letter from the state secretary.

View JSON | Print