Tommy oversees Goro land deal: Ricardo

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)