Regent named main suspect in Rp 88b graft scandal

The Jakarta Post, Berau/Nabire

The nationwide anticorruption drive continued this week as law enforcers in Kalimantan and Papua brought charges against two regents.

Prosecutors in Berau regency, East Kalimantan, named Regent Masdjuni a suspect in a reforestation fund scam that allegedly cost the state Rp 88 billion (about US$1 million). Masdjuni could be the first regent in the province to stand trial for corruption.

The chief prosecutor in East Kalimantan, Masri Djinin, said his office was processing the corruption case against Masdjuni and would intensify its investigations into other corruption cases in East Kalimantan.

"We will not only handle the Berau regent's case, but also several other cases allegedly involving state officials and legislative members," he said.

According to Masdjuni's lawyer, his client is accused of passing a ruling abolishing the imposition of taxes on companies that have logging concessions in the regency.

Prosecutors expect to submit the case file on Masdjuni to the Tanjung Reded District Court by the end of December and for the suspect to go on trial in January 2005.

Masdjuni's lawyer, Robert Nababan, said the investigation was still underway and that the defense would present seven witnesses.

"Masdjuni's defense team has received the approval of the Attorney General's Office to present a number of witnesses next week," said Masri.

The seven witnesses are from farmers' groups that hold forestry permits. Other witnesses expected to testify are experts in forestry, state administration and law.

In Papua province, police are forging ahead with the investigation of Nabire Regent A.P. Youw, who is suspected of misusing Rp 2.4 billion in construction funds. This investigation was directly authorized by President Susilo Bambang Yudhoyono.

Papua Police detectives chief Sr. Comr. Mangisi Situmorang said after questioning Youw for five hours in Nabire on Thursday that there were indications the regent was involved in misappropriating funds allocated for the construction of the Merah Putih market.

Youw was accompanied by a team of lawyers led by Soedjono during the questioning.

Situmorang said the Rp 2.5 billion project was not properly tendered and that Youw appointed a contractor directly.

Youw has argued that a regent has the right to appoint contractors for projects valued at less than Rp 50 billion, as outlined in Presidential Decree No. 8/2000. He also pointed out that the project was approved by the regency council.

The regent said the contractor, Leo Djapari, had previous experience on two large projects in Nabire: the Panca Niaga and Mega Baru buildings.

Youw said Leo initially submitted a proposal to him, which was later referred to the Nabire Development Planning Agency. The proposal was then forwarded to the regency council and approved.

Leo also has been named a suspect in the case.

The Merah Putih market is intended to be a wholesale center for foodstuffs.