Rahardi held in connection to Bulog scandal

Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta

Former chief of the State Logistics Agency (Bulog) Rahardi Ramelan began a 20-day stint at Cipinang Penitentiary on Thursday, pending trial for the alleged embezzlement of Rp 54.6 billion (about US$5.2 million) in nonbudgetary state funds belonging to the agency.

The investigators handed over the high-profile case to the Jakarta Prosecutor's Office, along with evidence and the prime suspect Rahardi, who is charged with abusing his power in the disbursement of the state funds in 1999.

Rahardi, who was also the minister of industry and trade at the time in question, was sent in the afternoon to the penitentiary in East Jakarta to await trial. The detention period can be extended for a maximum of 40 days.

Assistant prosecutor for special crimes at the office, Tarwo Hadi Sadjuri, told reporters that Rahardi was charged with violating Law No. 3/1971 Article 1 line a and b and No. 31/1999 Article 2 and 3. Both of the laws are on corruption eradication.

"The suspect allegedly violated the law. By law, we have the authority to detain him," he said.

Article 1 of the 1971 law states that a person who amasses wealth, with or without abusing power, that causes losses to the state should be punished.

The sentences are stipulated in the 1999 law. Article 2 regulates a life sentence or a minimum four years to a maximum 20 years in prison. A death sentence can be meted out under special circumstances. The convicted can also be ordered to pay a fine of between Rp 200 million and Rp 1 billion.

Article 3 regulates that a person committing corruption through abuse of power can be sentenced to a minimum one year to a maximum 20 years' imprisonment or a life sentence. The convicted can also be fined Rp 50 million to Rp 1 billion.

Tarwo said Rahardi was detained on the grounds that he was charged with a crime that carries a more than five-year jail sentence and that the prosecutors feared the suspect could flee, conceal evidence or commit another crime.

Rahardi was named a suspect in the case last July while he was a guess lecturer overseas. He returned to Jakarta for a series of questioning three months later.

Also implicated in the case is House of Representatives Speaker and Golkar Party leader Akbar Tandjung. But unlike Rahardi, Akbar avoided both a travel ban and detention.

No satisfactory response could be obtained from investigators on why Akbar, who cannot prove that Rp 40 billion of the money was used to finance a charitable project, is untouchable to a travel ban or detention.

Akbar was the minister/state secretary when the alleged crime took place. He was involved in a government-sponsored charitable program, although the presidential decree regulating the project delegates the authority to the minister of finance and coordinating minister for people's welfare and poverty alleviation.

Rahardi's lawyer, Yan Djuanda Saputra, said he would ask that his client be given a suspended detention or that his detention be changed to city or house arrest. He said the detention was baseless and unfair since his client had complied with the law.