Tommy oversees Goro land deal: Ricardo

JAKARTA (JP): The former president of PT Goro Batara Sakti, Ricardo Gelael, denied on Monday that he played a decisive role in the wholesale firm's 1995 land exchange deal with the State Logistics Agency (Bulog).

The businessman told the court that he merely acted on behalf of the company's president commissioner, Hutomo "Tommy" Mandala Putra.

"I used to tell the president commissioner that if there were any third-party related matters, he (Tommy) was the one who had the authority to issue an approval," Ricardo told a hearing at the South Jakarta District Court.

"Those executive-level decisions were held accountable in the twice-yearly meetings of shareholders," he said in the hearing session, presided over by Judge Djalius Amin.

He cited as an example Goro's 1996 credit application to Bank Bukopin, which was upon the knowledge and approval of Tommy, who is the youngest son of former president Soeharto.

The proposal was delivered with the aim of securing funds to purchase a 71-hectare property in Marunda subdistrict, North Jakarta, he said.

Under the land deal signed in August 1995, the property in Marunda, which would be provided by Goro, would be exchanged with Goro's 50-hectare warehouse complex in Kelapa Gading, also in North Jakarta.

Part of the Marunda property was purchased by Bulog for Rp 32 billion (US$4.6 million), while the remainder was bought by Goro with a Rp 20 billion loan secured from Bank Bukopin. The loan was guaranteed by Bulog with a Rp 23 billion deposit.

Ricardo told the judges that Tommy played an important role in making the land exchange deal a success.

"I told the president commissioner about the plan to demolish Bulog's Kelapa Gading warehouses in March 1996," he said, adding that Tommy approved the plan.

He said Bulog had never complained about the demolition of its warehouses, explaining that it was to pave the way for the realization of the land exchange deal.

He said he owned 20 percent of Goro's shares, while Tommy held the remaining 80 percent.

Loss

Ricardo told the judges that he suffered a loss in the land exchange deal.

"I suffered a Rp 2.2 billion loss when we (Ricardo and Tommy) transferred our ownership in Goro to the Confederation of Primary Cooperatives Association (Inkud) in 1998," he said.

"Bulog paid me Rp 15.2 billion for the transfer deal, while Tommy got Rp 60 billion," he said.

Ricardo said he had to pay Rp 17.4 billion to finance the warehouse demolition and to pay back Bank Bukopin's loan guarantee.

"So, it was me who suffered the loss, but not the state," he said. This was greeted by laughter from the gallery at the court hearing.

Mampan Manalu, an auditor at the Supreme Audit Agency (BPK), earlier told the same court that Bulog suffered Rp 13 billion in losses, incurred through Goro's demolition of Bulog's 11 warehouses in Kelapa Gading.

The trial was adjourned until August 30, when prosecutor D. Munthe is scheduled to present his indictment. (asa)