Sapuan denies embezzling Rp 35b in Bulog funds

JAKARTA (JP): Former State Logistics Agency (Bulog) deputy chief Sapuan admitted Tuesday that he had disbursed Rp 35 billion (US$3.7 million) from the agency's Yanatera employee foundation but denied he had embezzled the money.

Sapuan is being tried in the South Jakarta District Court for abusing his authority and misappropriating money - the charges carry a maximum five-year jail term.

"I ordered the disbursement of the Yanatera funds because I believed President Abdurrahman Wahid had requested the funds through Suwondo," he said.

Suwondo, the President's masseur, has been named a suspect in the case and a special House committee is investigating the President's role in the scandal.

Prosecutor Nulis Sembiring has presented 35 witnesses in Sapuan's trial but has failed to present Abdurrahman, whose name is mentioned in the indictment and in testimony.

During cross-examination Sapuan said he did not receive any of the Rp 35 billion but had lost his job at Bulog over the disbursement.

He told the court that he met President Abdurrahman on Jan. 7 last year at the presidential palace by arrangement of Suwondo. The President asked him how much money was available at Bulog as Rp 35 billion was needed for humanitarian aid in Aceh.

"I said Bulog had some Rp 370 billion. I told the President that if money was needed, I could make the disbursement as long as it was preceded by a presidential decree. The President did not comment. Then I left the presidential palace," he said.

According to Sapuan, Suwondo told him later that the President was of the opinion that issuing a presidential decree was too complicated and asked Suwondo to seek funds from another source.

"Based on this, I was then willing to seek the money from another source, namely Yanatera. I was sure funds disbursed from Yanatera would be returned soon because Suwondo had told me the President would receive a large sum of money donated by a Middle East country," he said.

That's why on Jan. 13, Sapuan issued his first memorandum to Yanatera chairman Mulyono, stating that Mulyono could disburse up to Rp 10 billion for the purpose of "Aceh humanitarian aid", he said.

The second memorandum, also signed by Sapuan on Jan. 25, ordered the disbursement of Rp 25 billion.

The receipt of acceptance of the money was signed by Suwondo as the President's personal assistant, the court heard.

Sapuan looked nervous when the court asked him who had named Suwondo as the President's personal assistant as written on the receipt.

He said it was on the request of Suwondo.

Sapuan said he never sought confirmation of Suwondo's request since he did not have any mistrust of Suwondo.

Sapuan, who was represented by a team of 10 lawyers led by Mohammad Assegaf, denied Prosecutor Nulis Sembiring's charges that he had acted beyond his authority.

The prosecutor said Yanatera statutes clearly stipulate that release of foundation funds of more than Rp 500 million must be approved by the Bulog chief.

"Since former Bulog chief Yusuf Kalla endorsed his authority to me on Jan. 24, 1999, I had the legal authority to approve the disbursement," he said.

The hearing was adjourned until next Tuesday. (01)