Fri, 12 Jun 1998

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)