President requested funds: Official

JAKARTA (JP): A senior official of the State Logistics Agency (Bulog) testified in court on Tuesday that he had disbursed Rp 35 billion of funds from an employee foundation in January.

He believed the money was requested by President Abdurrahman Wahid.

Mulyono, chairman of Bulog's Yanatera foundation, said he understood that then Bulog deputy chief Sapuan had full authority to order him to disburse the money.

Sapuan said the money was needed for a government humanitarian program in Aceh upon an order from President Abdurrahman, Mulyono told the South Jakarta District Court, which is trying Sapuan on charges of embezzlement of Bulog money.

Sapuan has denied the charges and insisted that he requested the money because it was so-ordered by the head of state. If found guilty, he faces a maximum jail term of five years.

The suggestions of the President's involvement and allegations that the money went into the pockets of members of his inner circle prompted the House of Representatives to launch an inquiry.

Mulyono said he had followed all proper procedures in releasing the funds, stressing that Sapuan had full authority to manage Bulog's day-to-day operations on behalf of the agency's then chief Jusuf Kalla, who at the time was also minister of industry and trade.

He said the order to release the Rp 35 billion was contained in a memo signed by Sapuan, although the foundation's statute stipulated that the release of any sum above Rp 500 million must have the written approval of the Bulog chief.

"We (and the staff) believed Pak Sapuan had full authority to order the disbursement of the funds," he said.

Sapuan had earlier promised to bring a receipt signed by President Abdurrahman, but it later turned out that the receipt was signed by Suwondo, the President's masseur, Mulyono said.

In May, the foundation called for a meeting with Sapuan and Suwondo to discuss the return of the money, he said, adding that Yanatera eventually agreed to treat the funds as a loan to Suwondo, payable within one year at an annual interest rate of 18 percent.

The trial also heard the testimony of Tito Karnavian of the Jakarta Police's Economic Investigation Unit, who explained to the court the process of Sapuan's arrest and the ensuing investigation.

Suwondo, who has also been named a suspect in the Bulog scandal, is still at large.

Presiding judge Lalu Mariyun adjourned the hearing until next week. (01)