Land exchange deal 'caused Bulog losses'

JAKARTA (JP): An official from the Supreme Audit Agency (BPK) told the South Jakarta District Court on Friday that State Logistics Agency (Bulog) suffered substantial losses in its land exchange deal with wholesale firm PT Goro Batara Sakti.

M. Manalu, BPK's expert auditor, said the losses, found when he audited Bulog in the period between October 1997 and November 1997 and between March and April last year, were estimated at Rp 65 billion.

"The losses were incurred because the land exchange deal violated existing procedures," Manalu said.

Under the land deal, signed in August 1995, Bulog would exchange its 50-hectare warehouse complex in Kelapa Gading for a 71-hectare plot in Marunda to be provided by Goro.

He said that out of the Rp 65 billion losses, Rp 13 billion was incurred from Goro's demolition of Bulog's 11 warehouses in Kelapa Gading.

The remaining Rp 52 billion (in losses) was caused by the fact that it was Bulog itself, which was forced to buy the land in Marunda as a substitute for the land in Kelapa Gading, he said.

Part of the substitute land was purchased by Bulog at Rp 32 billion, while Goro purchased the remainder with a Rp 20 billion loan from Bank Bukopin. The loan was guaranteed by Bulog with a Rp 23 billion deposit, he said.

According to the Ministry of Finance's decree on land exchanges, the substitute land should have been wholly provided by Goro, Manalu said.

"Although Goro was appointed by (former) president Soeharto, the land exchange deal should have abided by the decree."

Manalu gave his testimony in court in his capacity as an expert witness in the trial of Goro's former president Ricardo Gelael.

Ricardo was indicted along with Goro's former chief commissioner Hutomo "Tommy" Mandala Putra and Bulog's former chief Beddu Amang for corruption related to the land deal. The deal allegedly caused the state losses amounting to Rp 95 billion.

Beddu's name, however, was dropped from the indictment, because the prosecutors were unable to obtain President B.J. Habibie's permission to prosecute Beddu who is still a member of the People's Consultative Assembly. The President must give his approval before cases against Assembly members can be pursued.

Manalu's testimony was markedly different from testimony delivered in earlier court sessions by Beddu, who insisted that Bulog suffered no losses.

Tommy, who is also Soeharto's youngest son, also testified in court on Friday, admitting that the land exchange was his idea.

"I asked Ricardo to join Goro because Ricardo has a lot of experience in the retail business," Tommy said.

He said he developed an interest in the deal after learning that Bulog planned to open a larger warehouse complex than the Kelapa Gading complex.

At the trial, Tommy frequently answered questions in the negative, claiming he was unaware of details and arguing he was just a president commissioner of the firm.

"All the details were conducted by Goro's board of directors," he said, adding that Goro was 80 percent owned by his company PT Humpuss with the remainder owned by Ricardo. (jun)