Muniggar Sri Saraswati The Jakarta Post Jakarta
Former chief of the State Logistics Agency (Bulog) Beddu Amang is facing a possible sentence of four years in jail for allegedly causing some Rp 95.4 billion (US$9.54 million) in state losses in a corrupt land swap deal.
State prosecutors are also asking for Beddu to be required to return Rp 39.3 billion to the state and pay an additional Rp 10 million fine.
The request was made in a 400-page report read by prosecutors Fachmi, Sulaeman Hadjarati and Surung Aritonang, at the South Jakarta District Court on Thursday.
"Beddu Amang illegally abused his authority in order to accumulate wealth for himself and other parties..." Surung told the court, which was presided over by Judge Lalu Mariyun.
Beddu, 63, appeared bored during the nearly 4-hour hearing and stayed calm throughout.
After the trial, however, he expressed his disappointment of the sentencing demand.
"Prosecutors did not seem to consider evidence or witnesses," Beddu told reporters.
According to prosecutors, Beddu had violated his authority as Bulog chief by signing a Memorandum of Understanding (MoU) on a land swap deal between the agency and PT Goro Batara Sakti on Feb. 17, 1995, only two days after he was assigned to become the agency's chief.
The now infamous son of former President Soeharto, Hutomo "Tommy" Mandala Putra owned 80 percent of PT Goro, while the rest belonged to Ricardo Gelael, the company's then-president director.
The MoU stipulated that PT Goro would provide 125 hectares of land in an area in Bekasi to exchange it with Bulog's 48 hectares of land in Kelapa Gading, North Jakarta.
PT Goro decided later to exchange it for 60 hectares in Marunda, North Jakarta. The transaction would be managed by a third party, businessman Hokiarto, whose company was a Bulog partner for years.
Since PT Goro did not have funds to buy the land, Ricardo asked Beddu to underwrite a Rp 20 billion loan from Bank Bukopin with Bulog funds of Rp 23 billion. Beddu approved the request.
In the mean time, Hokiarto also asked for Rp 32.5 billion from Beddu since he claimed that PT Goro did not pay enough money for the land. Beddu also approved that request.
Beddu then allowed PT Goro to utilize some 16 Bulog warehouses to run the company's wholesaling business, which accounted for Rp 40 billion in losses for the agency, according to prosecutors.
Ironically, PT Goro refused to pay the debt to Bank Bukopin when the MoU was canceled later in 1998, since Tommy and Ricardo sold PT Goro to the cooperative body Inkud for some Rp 76 billion. Inkud paid some Rp 46 billion back to the state later.
The Supreme Court had sentenced Tommy to 18 months in jail for his part in the land swap scandal, but last week he was exonerated from all corruption charges.