ICW reveals misuse of Rp 337b in Bulog cash

ICW reveals misuse of Rp 337b in Bulog cash

Yogita Tahilramani, The Jakarta Post, Jakarta

The need for transparency in the use of State Logistics Agency
(Bulog) funds has found a fresh cause as the Indonesian
Corruption Watch (ICW) disclosed on Wednesday an alleged misuse
of over Rp 377 billion belonging to the institution between
January 1998 and December 1999.

Claiming that the findings were based on his organization's
investigation, ICW chairman Teten Masduki said portions of the
money allegedly went to the House of Representatives, the Golkar
Party, certain individuals, the State Palace, courts and
prosecutors' offices.

"I have repeatedly said that the Attorney General's Office
must not direct investigations simply to convict suspects in
graft scams involving Bulog, but use the evidence to trace the
funds... where did it all go?" Teten told The Jakarta Post on
Wednesday.

In its report, ICW found that former Bulog chairman Rahardi
Ramelan received Rp 51.5 billion. It did not say, however, when
the money was transferred to Rahardi which was in the books as
"state purposes".

Rahardi is standing trial for an alleged misuse of Bulog funds
in 1999, which also implicated Golkar chairman and then
state/minister of secretary Akbar Tandjung.

Bulog also disbursed Rp 5.2 billion for "fees for the handling
of the corruption case on the Goro-Bulog landswap deal". The 1995
landswap case ended up with both former president Soeharto's son,
Hutomo "Tommy" Mandala Putra and ex-president of wholesale firm
PT Goro Batara Sakti, Ricardo Gelael, sentenced to 18 months in
prison.

There were expenditures categorized as "coordination funds"
which went to, among others, the House of Representatives, the
Supreme Audit Agency, the Development Finance Comptroller and the
State Secretariat.

Golkar was the only political organization included on the
list.

Teten's colleague, Zaki, added that ICW had planned to inform
the Attorney General's Office about this matter. "We received
this information recently... we analyzed it and just finished
putting together the report on Tuesday," Zaki said.

Bulog Chief Widjanarko Puspojo and spokesman Subardjo could
not be reached for comment on the findings.

ICW's report confirmed earlier findings by a group of
legislators, who asked then attorney general Marzuki Darusman to
investigate the alleged misuse of Bulog funds amounting to Rp 2
trillion between January 1998 and December 1999.

One of the legislators, Tarisiwi Utami of the National
Awakening Party (PKB) faction said on Wednesday that the Attorney
General's Office needed to find out who received the funds.

A group of legislators, mostly from PKB and the Indonesian
Democratic Party of Struggle (PDI Perjuangan) proposed in 2000
the establishment of a special committee to look into alleged
misuse of Bulog funds. The motion was rejected by the House.

The alleged misuse of Bulog funds indirectly led to the ouster
of former president Abdurrahman Wahid last year, although a
formal investigation found no evidence of his involvement.

Teten did not reveal whether or not the graft case ICW had
investigated and Tarisiwi had disclosed to the press on Wednesday
was the same case.