Int'l auditors hired to track graft in forestry associations

JAKARTA (JP): International auditors Price Waterhouse and Arthur Andersen have been hired to examine several forestry associations to track possible misuse of funds by their former chairman, Mohamad "Bob" Hasan.

Minister of Forestry and Plantations Muslimin Nasution said on Friday Price Waterhouse was currently auditing the Association of Indonesian Wood Panel Producers (Apkindo) while Arthur Andersen was auditing the Association of Indonesian Forest Concessionaires (APHI).

Muslimin said he had set up a support team to help the auditors and the associations. Headed by former director general of forest utilization Titus Sarijanto, the team will provide data related to the funds, including export figures which might have been forged by Hasan.

"Bob Hasan collected the funds from the associations' members, so they are the ones who can demand the funds from Bob, not the MPI or the MPI Reformasi," he said referring to the Indonesian Forestry Society (MPI) and its rival MPI Reformasi.

Last week, MPI Reformasi, a breakaway reform group of the MPI demanded that timber tycoon Hasan return US$2.04 billion he collected in forestry fees from 1991 to 1997.

The MPI Reformasi said that Hasan -- a long-time golfing buddy of former president Soeharto -- also collected commissions, promotion funds and trading monopolies on plywood products.

It also accused Hasan of gathering an estimated $8 billion from sawn timber, wood, pulp and paper products and monopolies on aerial photography of forests and insurance.

Appointed chairman of MPI in 1991, Hasan resigned last March following his appointment as minister of industry and trade. The change in the government in May split MPI into two groups, one remaining loyal to Hasan and the other advocating reform.

MPI is an umbrella group for nine forestry-related organizations, including Apkindo, APHI and the Indonesian Saw Millers Association (ISA), all of which were chaired by Hasan.

Muslimin said all nine associations would eventually be audited, but he declined to name the auditors. (gis)