Hamzah denies PPP link to PT QSAR

Fabiola Desy Unidjaja and Yuli Tri Suwarni, The Jakarta Post, Jakarta/Bandung

United Development Party (PPP) chairman Hamzah Haz flatly denied on Monday any connection between the political organization the agribusiness company PT Qurnia Subur Alam Raya (QSAR).

The statement contradicted one made earlier by PPP executive Tosari Widjaja, who admitted investing some Rp 5 billion (US$561,800) of the party's funds and Rp 1.5 billion from certain cooperatives under the party to the company, which has collapsed.

Tosari, whose political career now hangs in the balance, has been authorized to raise funds for the party's campaign in the 2004 election without having to consult Hamzah.

Threatened with disqualification from the election, Hamzah, who is also the Vice President, said on Monday that Tosari did not invest the money on behalf of PPP.

"It is not related to the party, because Tosari made the investment on his behalf. The party's executive board has never approved anything on it," Hamzah asserted.

Police have arrested QSAR president director Ramli Araby and other executives on charges of illegal banking practice following the Sukabumi, West Java-based company's bankruptcy filing a few weeks ago. The police are also questioning Tosari's wife, Matsusoh, who reportedly headed a QSAR subsidiary in the East Java town of Probolinggo.

Around 6,800 investors have filed lawsuits against the company and claimed its assets as it has cost them around Rp 500 billion.

On Sunday, Hamzah planned to visit Ramli at his detention in the Sukabumi Police Precinct, but it was canceled at the last moment, no reason given.

A General Election Commission (KPU) member Hamid Awaluddin has said that investing a party's money violates Law No.2/1999 on general elections, which consequently could bar PPP from the 2004 polls.

Hamzah hopes to run for the presidency in 2004, the first time ever an Indonesian president will be elected directly.

Tosari, who is also the deputy House of Representatives Speaker, has said he will return the money to the party.

PPP planned to grill him regarding the case, but Hamzah said on Monday the questioning would only be decided after the party's executive board meeting sometime this week.

"We will not hand him any punishment because he said he would return the money," Hamzah said.

Meanwhile, the West Java police said they would continue the questioning of Matsusoh and Sukabumi Regent Maman Sulaeman.

Head of the investigation team Adj. Sr. Cmdr. Charles Napitupulu said on Monday the questioning would focus on QSAR assets and Tosari's link to Ramli.

Napitupulu said the questioning of Tosari was unlikely, pending President Megawati Soekarnoputri's approval. Megawati will arrive home from her overseas trip on Saturday.

The officer further said that so far the police have not found the names of political parties or Tosari in the list of investors.

"We have to go through each name because the company's computers had been destroyed by the investors," Napitupulu said in Bandung.

He also said the police had gathered 40 more land ownership certificates belonging to QSAR in addition to the 54 assets confiscated by the police.

Ramli is facing charges of a fraud which carries a maximum sentence of four years, swindling public funds also with a maximum sentence of four years and illegal collection of public funds with a maximum sentence of 15 years in jail.

"We have asked for help from three universities to investigate the case," Napitupulu said, adding that he expected the probe could be completed in November.