Prosecutors question Ali over graft case at BPUI

JAKARTA (JP): Former minister of finance Ali Wardhana was questioned at the Attorney General's Office on Monday as a suspect in a Rp 1.1 trillion (US$110 million) graft case at state-owned investment company PT Bahana Pembinaan Usaha Indonesia (Voice of Indonesian Business Development, BPUI).

Ali, 73, arrived at the office at about 9:30 a.m. and was accompanied by his lawyer, Amir Syamsudin, and banking legal consultant Pradjoto.

The questioning -- led by prosecutor Sarwo Hadi Sajuri, was the first session since Ali, as BPUI's president commissioner, was named a suspect on Friday, along with BPUI president director Sudjiono Tiran.

An investigation by the Attorney General's Office revealed that BPUI had allegedly embezzled some Rp 1.1 trillion when taking over the debt of publicly listed timber company PT Barito Pacific in exchange for shares.

"The debt was Rp 1.7 trillion but BPUI only paid Barito some Rp 600 billion," office spokesman Muljohardjo said.

The funds were apparently channeled through three state banks: Bank Bumi Daya, Bank Dagang Negara and Bapindo.

Muljohardjo said that in the past seven years, Ali had approved giving some $19 million in loans to Virgin Island-based Penta Investment Ltd., an apparently fictitious company.

Ali was the minister of finance from 1968 to 1983. For the next five years he was the coordinating minister for economy, trade, industry and supervision for development.

According to Pradjoto, as a president commissioner of BPUI, Ali acted in line with the company's regulations and according to the results of a shareholders meeting.

"The allegation has to be clarified as he is not involved in the (corruption) case," he said.

As for the loan to Penta, Pradjoto said that Ali had not been aware of it.

"It was formulated in the company's grand design. The president commissioner did not have to know the details of the transaction as long as the directors carry out their duty well and in line with the company's regulations," he said.

Meanwhile, Amir said that they were now collecting evidence that Penta was really a company.

Ali is among former ministers serving in former president Soeharto's Cabinets who are being questioned by the Attorney General's Office in connection with corruption.

The others are former minister of mines and energy Ida Bagus Sudjana and Sudjana's predecessor Ginandjar Kartasasmita, while former minister of trade and industry Mohamad "Bob" Hasan is currently serving a six-year jail term in the maximum security Nusakambangan prison island in Central Java.

The Attorney General's Office issued a warrant to detain Ginandjar for 20 days on Saturday, but the suspect has not been physically held as he has been hospitalized since Thursday at Pertamina Hospital in South Jakarta.

Doctors treating Ginandjar said on Monday that his condition was improving.

"God willing, Ginandjar can leave this hospital on the weekend. We need several days to examine him further. But overall, his condition is improving," Adji Suprajitno from Pertamina Hospital told reporters.

Adji, however, refused to comment on Ginandjar's illness due to patient confidentiality.

"We are also cooperating with doctors from the Attorney General's Office. There are no differences or suspicions between us about the illness or the treatment," he added.

Ginandjar is a suspect in a graft case involving state oil and gas company Pertamina and PT Ustraindo Petro Gas, which allegedly resulted in $24.8 million in state losses.

People's Consultative Assembly Speaker Amien Rais was seen among the visitors on Monday. (hdn)