Indonesian Political, Business & Finance News

Moerdiono questioned over land swindle

| Source: JP

Moerdiono questioned over land swindle

JAKARTA (JP): Former minister/state secretary Moerdiono was
grilled by the Attorney General's Office yesterday over a 1994
scam in which state land was used as collateral on an Rp 90
billion loan for the construction of condominiums in Kemayaron,
Central Jakarta.

Spokesman for the Attorney General's Office Barman Zahir said
Moerdiono was questioned for over two hours by a team led by the
head of intelligence operations Sudibyo Saleh.

Barman said Moerdiono maintained his innocence throughout the
session.

The case revolves around a 25,000 square meter plot of land in
Kemayaron which was allegedly put up as collateral for the
development of condominiums.

The state land falls under the authority of Kemayoran Area
Development Board (BPKK), which minister/state secretary
Moerdiono chaired.

A board executive, Hindro T. Soemardjan, and real estate
tycoon Seno Margono allegedly used the land as collateral.

"I never knew the land had been used as collateral," Moerdiono
said, as quoted by Barman.

Seno, director of PT Duta Adi Putra, is being charged with
illegally converting the status of the land from state asset to
personal asset to acquire the loans.

Seno, 38, is the son-in-law of businessman Hendra Rahardja,
the brother of notorious fugitive Eddy Tansil, the petrochemical
businessman who escaped from jail two years ago.

Tansil was sentenced to 20 years in jail for defrauding
Bapindo Bank of US$620 million. He is still at large.

It is unclear if Moerdiono will be summoned for further
questioning.

"It depends on how the investigation develops," Barman said,
adding that the sole suspect in the case was Seno, although
Hindro had also been questioned several times.

Barman said Moerdiono was dressed in a white short-sleeved
shirt with blue pants. He came alone. The chauffeur of his blue
Volvo met him at the door at the end of the questioning.

"He arrived 15 minutes before the questioning began at 9
a.m.," Barman said.

Corrupt

Also yesterday, activists and human rights figures launched
another independent commission under the name of "Indonesian
Corruption Watch" to fight for the recovery of assets allegedly
obtained illegally by the Soeharto family.

The group is the second of its kind to form in reaction to
public pressure to investigate the fortune accumulated by the
ousted president and his family during the 32 years he was in
power.

Board members of the new commission include Trisakti
University dean of law and former justice Adi Andojo, the
Indonesian Legal Aid Foundation director Bambang Widjojanto, PDBI
executive director Christianto Wibisono and noted lawyer Todung
Mulya Lubis.

The group's operations director Teten Masduki said that
Soeharto's assets should be reclaimed through a political
mechanism so that the process had a strong legal basis.

The group's statement also said the upcoming extraordinary
session of the People's Consultative Assembly (MPR) at the end of
the year should ratify a decree on reclaiming the Soeharto family
wealth.

Todung tried to reassure foreign investors and the public that
the investigation would be lucid in its attempt to recover stolen
state wealth without infringing on the private property of
others.

"We don't intend to destroy existing companies but simply to
return assets and equities which belong to the country." Todung
explained.

Meanwhile, a group of 18 University of Indonesia law school
students met with Attorney General Soedjono C. Atmonegoro at the
latter's office yesterday to press for a clean and professional
judiciary system.

After almost one hour of frank discussions, Soedjono signed a
large white banner inscribed with anti-corruption slogans which
the students had brought with them. (byg)

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