Tue, 01 Feb 2005

JP/04/PUTEH

Treasurer admits to transferring Rp 7.75b to Puteh's account

The Jakarta Post Jakarta

Aceh's treasurer testified at the graft trial of Abdullah Puteh on Monday that he had transferred some Rp 7.75 billion (US$855,555) into the suspended governor's personal account to buy a Russian-made helicopter in 2002.

Speaking at the Anti-Corruption Court, Zainudin said the money was transferred in two stages -- Rp 4 billion in 2001 and the remaining Rp 3.75 billion a year later.

The money was later sent to PT Putra Pobiagan Mandiri (PPM), the provider of the MI-2 helicopter worth some Rp 12.6 billion, the witness said.

"The money was transferred from the Aceh provincial administration's account to the governor's Bank Bukopin account, to pay PT PPM for the chopper," Zainudin said.

The remaining Rp 4 billion used to buy the helicopter was collected from Aceh's regional administrations.

Puteh is charged with marking up the price of the helicopter his administration bought in 2002, which the Corruption Eradication Commission alleges led to Rp 10 billion in losses to the state.

The governor, who was made non-active last year after legal processes started against him, had returned some of the Rp 2.6 billion of the Rp 12.6 billion to the administration, prosecutors said.

Zainudin said the 2001 provincial budget had not allocated any money to the purchase that had been approved by the Aceh legislative council and all the 13 mayors and regents in the province.

The witness said he had made the first transfer, although he had no knowledge of whether it was based on any contract between the Aceh administration and PT PPM.

"I didn't know whether any contract had been made before, but the first transfer I made without a disposition letter. Then the second transfer was made under the letter issued by the chief of the provincial bureau of finance," he said.

During earlier court hearings, witnesses had said the Aceh administration and PT PPM agreed in 2002 to draw up a contract to procure the helicopter.

However, Zainudin defended the transfers as "legal", claiming that the use of such a personal account was allowed under the law because the governor had authority over all flows of public money under his jurisdiction.

The treasurer argued the decision to buy the helicopter was the right one as it was used to help restore security in the province, where separatist rebels had been fighting for independence since 1976.

"The conditions (in Aceh) were messy. The whole system had broken down: The judges and prosecutors had all run away because of security reasons. The helicopter was badly needed at the time," Zainudin said.

His testimony was met with stirring applause from the gallery, which was packed with Puteh supporters.

Puteh's lawyers asked Zainudin to confirm if he had witnessed any corruption in the payments to PT PPM. He answered in the negative.

Chief prosecutor Khaidir Ramli said the treasurer's testimony directly implicated Puteh in graft, saying it was proof Puteh had abused the system for his own gain by ordering the transfers to his personal bank account.

Monday's trial also heard another witness, T.M. Lizam, head of the provincial bureau of finance, whose testimony concurred with Zainudin's. (006)