Indonesian Political, Business & Finance News

Regent questioned in Rp 88b scandal

| Source: JP

Regent questioned in Rp 88b scandal

Rusman, The Jakarta Post/Samarinda

The regent of Berau in East Kalimantan, Masdjuni, was questioned
for over eight hours on Friday as a suspect in a reforestation
fund scandal, which is alleged to have cost the state some Rp 88
billion.

Separately, a non-governmental organization accused 45 former
members of the East Kalimantan legislature of being involved in a
Rp 1.6 billion graft case involving fictitious official trips.

Masdjuni was questioned at the East Kalimantan Prosecutor's
Office in Samarinda by a team from the Attorney General's Office
(AGO) in Jakarta.

The regent is charged with issuing a decree in 2000 exempting
local businesspeople from paying reforestation contributions and
forestry royalties.

East Kalimantan chief prosecutor D.H. Panjaitan declined to
reveal the results of the questioning, which started at around 10
a.m. local time.

The probe was being carried out by the six-member team from
the AGO, Panjaitan told journalists.

Earlier, the team, led by Yan Mere of the AGO's special crimes
section, also questioned a number of witnesses in connection with
the same case.

The alleged scam was first reported by the Forum of Berau
Residents concerned with the Environment and Development
(FMBKBPLP), and a number of members of the regental legislative
council.

The NGO and the councillors brought their findings directly to
President Megawati Soekarnoputri, the Ministry of Forestry, the
National Police and the AGO.

Based on an investigation by the Supreme Audit Agency (BPK),
Decree No. 48/2000, which was issued by Masdjuni and exempted
forestry concessionaires from paying reforestation contributions
and royalties, resulted in the state being out of pocket to the
tune of Rp 88 billion.

The BPK also found indications that the regent was involved in
changing the status of state forests to that of privately owned
land without requiring valid title documents to be produced.

It was based on this that the companies granted ownership of
forests were exempted from paying the reforestation contributions
and forest royalties.

Masdjuni's lawyer, Ujang Supendi, said his client had been
asked at least 22 questions by prosecutors regarding the process
leading to the issuance of the decree.

The decree was based on "directives" from the relevant
authorities, according to Ujang, who rejected the graft charges
against the regent.

"The investigation was yet to get to the point of discussing
the alleged losses suffered by the state as a result of the
issuance of the decree," he added.

The lawyer said the questioning of the regent would continue
after Monday's presidential election runoff.

Meanwhile, the Non-Governmental Organization concerned for
State Assets (LSM-PKN) revealed on Friday that it had found that
the 45 East Kalimantan council members for the 1999-2004 term had
allegedly swindled some Rp 1.6 billion allocated out of the
province's budget for official trips to other provinces.

After checking with to the local governments listed on the
council's itinerary, it turned out that the official visits were
fictitious, LSM-PKN executive director Achmad Basori said.

He said that what actually happened was that the councillors
had sent officials from the council secretariat instead.

"These officials brought official travel documents to be
signed by administration officials in the local government
jurisdictions in question, while the councillors pocketed the
money without actually making the visits. This is corruption,"
asserted Basori.

Basori said that the same applied in the case of overseas
visits. A number of travel agencies acknowledged that some
councillors in East Kalimantan had frequently asked them for
blank tickets, but did not use them.

The black tickets were then given to other councillors who did
make overseas trips to be endorsed by officials in the
destination countries, he added.

Basori said the councillors received Rp 15 million each for
official domestic trips twice a year, and Rp 30 million each for
an official overseas trip once a year.

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