Plantation firm director charged in Palu graft scam

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.