Mapindo performed aerial mapping upon request: Hasan

JAKARTA (JP): Timber tycoon Mohammad 'Bob' Hasan, the defendant in an allegedly fraudulent aerial mapping project between 1989 and 1999, revealed on Wednesday that he took over the project upon request of the company originally named for the job.

Hasan told the Central Jakarta District Court that the Indonesian Forest Concessionaires Association (APHI) awarded the $87 million project to PT Adikarto Pripindo in 1988 based on judgment by APHI's top executives and the government.

But within a short time, the firm encountered financial problems that forced it to halt the project, said Hasan, who chaired APHI until he was appointed the minister of trade and industry by his golfing buddy then president Soeharto in 1997.

"They asked me to help inject some funds to continue the project in exchange for 50 percent of their shares," Hasan said.

Adikarto was jointly owned by businessman Bambang Yoga Soegama, APHI's executive chairman Tjipto Asmaning and businessman Widodo.

The defendant said he later acquired all the shares and changed the company's name into PT Mapindo Parama.

Prosecutors in the trial have found that Hasan violated the contract, and that the procedures and the results of the mapping were not in accordance with the requirements of the contract.

The scam caused an estimated $168 million in losses to APHI, prosecutors said.

Hasan said the project followed an agreement reached between APHI and the government, which obliged every company holding a forest concession (HPH) to own its aerial maps and airborne photos.

Many companies, however, could not afford to comply with the ruling, Hasan said. In August 1988 some 500 APHI members agreed that APHI coordinate the scheme.

Hasan claimed to have never heard complaints addressed to Mapindo concerning the aerial mapping and airborne radar imaging results.

The defendant admitted to know nothing about funds collected by APHI from forest concession holders for the project, saying he had handed over the matter to the APHI board of executives. He said he had no knowledge of why APHI did not convert its letter of agreement on the project with Adikarto after Mapindo took over.

Replying to a question raised by presiding judge Soebardi, Hasan said he signed approval of transfer of money from APHI for airborne radar imaging payment to Mapindo Parama thorough Bank Umum Nasional and Bank Dagang Negara in his capacity as APHI chairman. Hasan, however, said he forgot the amount of money.

The trial was adjourned until Thursday to hear more testimony from the defendant. (01)