Presidential guards spent Rp 2.2b of Bulog funds

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

A former chief of the presidential guards testified on Tuesday that former chief of the State Logistics Agency (Bulog) Rahardi Ramelan had granted his request for Rp 2.2 billion, which was taken from the agency's non-budgetary fund.

Maj. Gen. Suwandi told the South Jakarta District Court on Tuesday that he spent the money to buy ammunition, metal detectors and other equipment as well as to build garages to house several cars for state guests.

He said that he asked Rahardi for the money because he had a close relationship with former president B.J. Habibie.

"He had a close relationship with Pak Habibie and he was concerned about the safety of Pak Habibie as president therefore I requested the fund from him."

Suwandi, who now serves as a lecturer at the Indonesian Defense Institute (Lemhanas), admitted that he asked Rahardi, who was then also the minister of industry and trade, for the money on three occasions.

Rahardi's aide, Bustan Jufri, handed over a total of Rp 2.2 billion to the presidential guard's assistant for logistics in three lots on Feb. 12, May 5 and Sept. 27, 1999.

Suwandi said that he had given written reports to the military headquarters about the use of the money. He also said that he had told Habibie about it.

Rahardi, in response to Suwandi's statement, claimed that the witness had asked him for some money by phone.

"I recognized your voice," Rahardi said.

But Suwandi replied, "I never made a phone call. I've always made written requests when I asked any party for some money."

Rahardi is on trial for the alleged misappropriation of Rp 62.9 billion of Bulog's non-budgetary fund in 1999. Some Rp 40 billion went to then state secretary/minister Akbar Tandjung. Another Rp 10 billion went to Gen. Wiranto, then minister of defense and TNI chief. The rest was used for various purposes, including for the presidential guards and for the Indonesian Swimming Association (PRSI) which was headed by Rahardi.

In the hearing last week, Habibie testified via live video- linkup from Hamburg that he ordered Rahardi to disburse Rp 40 billion for Akbar for a humanitarian project, and another Rp 10 billion for Wiranto. But he said he knew nothing about the use of the other Rp 12.9 billion.

Wiranto had earlier said that he spent the money to provide security for the 1999 General Session.

Many believe that Akbar used the Rp 40 billion to campaign for Habibie, who eventually lost his seat.

Akbar, the Speaker of the House of Representatives and leader of Golkar party, however, has denied the accusation.

He is being tried separately on corruption charges.