Govt to conduct full probe into clove trade irregularities

Govt to conduct full probe into clove trade irregularities

JAKARTA (JP): Minister of Cooperatives and Small Enterprises
Adi Sasono said yesterday that the government would conduct a
comprehensive investigation into irregularities in the country's
clove trade.

Adi acknowledged that some officials of the former
administration had benefited from clove trading practices under
the defunct Clove Marketing and Buffer Stock Agency (BPPC),
chaired by former president Soeharto's youngest son Hutomo
Mandala Putra.

"The trade will be investigated. Any anomalies will be
rectified," Adi told journalists after meeting International
Monetary Fund Asia-Pacific Director Hubert Neiss.

The investigation will be carried out "thoroughly and
cautiously" because of the complexity of the trading system, Adi
said.

The government abolished BPPCs clove-trading monopoly under an
agreement reached with the IMF in exchange for a US$43 billion
bailout package to salvage the country's ailing economy.

BPPC was granted the clove-trading monopoly in early 1991.
Under the system, farmers were required to sell cloves to the
agency through cooperatives. The agency then sold the cloves to
producers of kretek cigarettes under a compulsory purchase
arrangement.

BPPC collected Rp 1.1 trillion (about US$100 million) in
revenue from clove farmers during the time that it held a
stranglehold on the trade. None of that money has yet been
returned to farmers or primary cooperatives.

On May 4, Hutomo symbolically transferred the Rp 1.1 trillion
fund to the Confederation of Primary Cooperative Associations
(Inkud). However, sources have said that no transfer of funds
actually took place.

On the same day, Hutomo sold all his PT Humpuss stake in
wholesaler Goro to Inkud.

Adi promised to investigate the sale of Goro shares to Inkud
and to take action if any wrongdoing came to light.

Adi said he would help clove farmers to get their money back.
(gis)