Soeharto signed Goro land deal, says Ricardo

JAKARTA (JP): Ricardo Gelael, executive of PT Goro Batara Sakti, testified at the South Jakarta District Court on Thursday that former president Soeharto himself had approved the land exchange transaction between his company and the State Logistics Agency (Bulog).

Ricardo, who is serving a 10-month jail term, said he was informed by an official at the state palace that the president had signed an approval on the land exchange agreement.

The court is trying former chief of Bulog Beddu Amang for his alleged involvement in the land swap scandal, which inflicted Rp 95.4 billion (US$10 million) in losses to the state.

Ricardo and Hutomo "Tommy" Mandala Putra, Soeharto's youngest son who was also an executive of PT Goro, were exonerated by the same court of all corruption charges in 1999. But the Supreme Court later overturned the court verdict and sentenced Tommy and Ricardo each to 18 months in prison in September last year.

Tommy disappeared a few days after President Abdurrahman Wahid rejected his appeal for clemency.

Ricardo said on Thursday that Tommy owned 80 percent of PT Goro's shares, while he owned the rest. Tommy played a small role in the land swap exchange activities, but Ricardo said he frequently consulted Tommy, who was the company's commissioner.

He said that PT Goro had demolished 11 warehouses belonging to Bulog in Kelapa Gading to make way for the construction of the Goro warehouse. As a result, PT Goro had suffered Rp 16 billion in losses, he said, adding he viewed this as one of the risks of doing business.

The court also heard the testimony of businessman Hokiarto, who owned the land in Marunda, North Jakarta, which was exchanged with Bulog's land in Kelapa Gading.

Hokiarto, who will be tried separately, said that at the beginning he was reluctant to sell the land.

"But Ricardo told me that Goro was owned by Tommy Soeharto. Because I was scared, I then agreed to sell my 30-hectare land at the price of Rp 80,000 per meter square," he said.

He said as the down payment of the land sale, Goro obtained Rp 15.6 billion through bank Bukopin. Goro then asked him to find another 41 hectares of land that Bulog required.

He said he agreed after Beddu offered him Rp 32.5 billion to cover the payment.

The hearing was adjourned until March 3. (01)