Prosecutors question Ali over graft case at BPUI

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)