Int'l auditors hired to track graft in forestry associations
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)