JP/04/PUTEH

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)