House committee to begin inquiry into Sukhoigate

The Jakarta Post, Jakarta

Alleged irregularities in the purchase of Russian-made Sukhoi jet fighters are expected to come into the open slowly as lawmakers begin their investigation on Monday into the highly politicized case.

Former head of the State Logistics Agency (Bulog) Rizal Ramli told The Jakarta Post on Sunday that he would explain the role and function of Bulog in a hearing with a working committee set up by House of Representatives Commission I to examine allegations of corruption, collusion and nepotism in the deal.

Bulog, set up to ensure the supply of rice and to stabilize its price, paid US$ 25 million to a Russian agent in a down payment for four Sukhoi warplanes and two Mi-35 assault helicopters in April. The deal cost US$192.6 million in total.

Rizal, who served as coordinating minister for economic and financial affairs during the leadership of former president Abdurrahman Wahid, said there appeared to have been attempts to revive past practices of turning the agency into a cash cow of the power holder.

"Instead of focusing on the Sukhoi deal, Bulog should have carried out its main duty," Rizal told the Post on Sunday.

Businessman Setiawan Djody was also due to be questioned on Monday.

Djody, who chairs the Russian section at the Indonesian Chamber of Commerce and Industry (KADIN), could not be reached for comment on Sunday, but committee member Djoko Susilo said the businessman was summoned to shed light on bilateral trade between Indonesia and Russia.

Apart from Rizal and Djody, the committee will also question Minister of Defense Matori Abdul Djalil, Indonesian Military (TNI) Commander Gen. Endriartono Sutarto, Minister of Industry and Trade Rini Soewandi and Bulog head Widjarnako Puspoyo.

Megawati, who was ushered into the presidential post in July 2001, is the third high-ranking state official to be implicated in scandals involving Bulog.

Abdurrahman was accused of misusing Rp 35 billion (US$4.25 million) in Bulog funds in 2002. The scandal, known as Buloggate I, eventually led to his impeachment in July 2001.

House Speaker Akbar Tandjung was tried on charges of abusing Bulog funds amounting to Rp 40 billion. The Central Jakarta District Court declared him guilty of corruption and sentenced him to three years in jail. The Jakarta High Court later confirmed Akbar's jail sentence but he remains free, pending an appeal to the Supreme Court.

Many analysts and politicians said that the House inquiry into the deal would not bring Megawati down, but could severely dent her credibility ahead of elections in 2004, when the country was expected to hold its first-ever direct presidential election.

People's Consultative Assembly (MPR) Speaker Amien Rais gave an assurance on Sunday that the investigation into the Sukhoigate affair was not aimed at removing Megawati from her post.

Some lawmakers have also implicated Megawati's son-in-law Happy Hapsoro, the husband of her only daughter Puan Maharani, in the high-profile scandal.

Legislators have said that the probe will focus on the choice of Sukhoi jet fighters and weapons procurement procedures.

Under existing legislation, the Ministry of Defense has the sole authority to purchase military equipment, with the knowledge of the House. Minister Matori said earlier that he was not involved in the deal.

Legislators are also questioning the nation's ability to maintain the warplanes, as the country has been more accustomed to U.S. and European-made jets.

Meanwhile, Nahdlatul Ulama Chairman Hasyim Muzadi has stepped into the furor, calling on the House to refrain from turning the issue into a political move.

"The political nuance of this issue is tangible; therefore we need to be careful to deal with this affair without reducing our critical stance of government policy on economic matters," said Hasyim, who leads the country's largest Muslim organization.

He suspected that political motives had dominated the case, which centers on the government's decision to buy four Sukhoi warplanes and two assault helicopters without involving the defense ministry and the House.

Hasyim asserted that the purchase of Sukhoi jets was not just a trade issue but a matter of state policy. The purchase, he said, was part of Indonesia's move to reduce its dependence on "the global power" (the U.S.); therefore it was to be expected if a departure from the old policy sparked disappointment from certain quarters.

"It is this global disappointment that must be carefully examined, so as to keep us from a conflict with global interests," Hasyim said, as quoted by Antara.

Hasyim suggested that politicians in the House examine the matter "comprehensively and proportionally".

"The House may investigate possible flaws in the procedures for the purchase. If they can still be corrected, so be it. However, if there are traces of foul play in the deal, such as price markups, we shall consider it corruption," he said.