Plantation firm director charged in Palu graft scam

Ruslan Sangadji, Palu

A director of a forestry and plantation firm has been named a suspect in the misuse of more than Rp 2.395 billion (US$266,111) in state reforestation funds, spokesman of the Central Sulawesi Prosecutor's Office Hasman said on Wednesday.

He said Gunawan Purwanto, director of PT Mitra Buana Persada Mukti based in Palu, was formally named a suspect following the questioning of several witnesses and the discovery of evidence.

Hasman said Gunawan was being interrogated thoroughly by a team of prosecutors and hoped his case file would be submitted to court soon to initiate trial proceedings.

Mitra Buana Persada won a tender in 2002 to manage the Rp 2.395 billion Local High-grade Forestry Development (PHUTL) project funded by the Ministry of Forestry, and was to replant local high-grade trees such as the cempaka, nyato and palapi in a Central Sulawesi forest.

However, the provincial prosecutor's office unearthed irregularities in the project's management, as the company had not fulfilled its part, even though the government had disbursed all funds for the project.

The money was received by Mitra Buana Persada's head office in Jakarta, said a local forestry official who requested anonymity.

"The funds had all been disbursed, but only 50 percent of the project was actually carried out. I suspect collusion between the company and officials of the Central Sulawesi forestry office," he added.

The replanting project was located on 800 hectares of a forest area in Taopa village, Moutong district, Parigi Moutong regency, which was formerly controlled by concessionaire PT Kolano Tiga Dua.

Hasman said prosecutors had questioned 20 witnesses in connection with the case, including Central Sulawesi forestry office head Idris Makkanyuma.

"But I could not say whether any of these witnesses would also be declared suspects or not. We are still investigating," he added.

Idris, when contacted by The Jakarta Post, declined to comment on his involvement in the case.

"Please ask the prosecutors who are dealing with the case," he said.