Tosari tells QSAR to replay investment
The Jakarta Post, Jakarta
Deputy chairman of the United Development Party (PPP) Tosari Wijaya has demanded that the recently collapsed agribusiness company PT Qurnia Subur Alam Raya (QSAR) repay the Rp 5 billion he has invested in it or otherwise he will sue the company for bankruptcy.
Tosari's lawyers, the firm of Mahendradatta and Nasrun Kalianda, said on Tuesday that their client would bring legal proceedings if the profit-sharing company failed to return the money.
The company is practically defunct and its president, Ramli Araby, and other members of its senior management are in custody facing charges of illegal public fund-raising and embezzlement.
During its operation, QSAR, based in Sukabumi, West Java, collected about Rp 500 billion from 6,000 investors.
The lawyers said the ongoing negotiations may not be sufficient to force the management to repay the investors, and could even cause political problems for Tosari, they added.
"The case is being politicized to discredit Pak Tosari's position and the United Development Party (PPP). This cannot be ignored," Mahendradatta told Antara.
He confirmed that the Rp 5 billion Tosari invested in QSAR belonged to the Muslim-based PPP, the third largest faction in the House of Representatives.
Tosari, who has been appointed the party's chief organizer for the 2004 election, said he borrowed the money as a private individual from his party on Apr. 16, 2002. However, the PPP's top executives said they were unaware of the loan.
Two days later, Tosari invested the money in the profit- sharing agribusiness company.
Sources in the PPP told The Jakarta Post that Tosari had come under fire from many party leaders in local chapters, who condemned him for allegedly misusing the party's funds.
"They are trying to nail Tosari in this case. He is limiting his appearances in public, especially before party candidates in the regions," one source said.
As an investor, Tosari, who is also a House of Representatives' deputy speaker, had close ties with Ramli and other top executives in QSAR. Other senior politicians in Jakarta had similar links, but they have denied any direct involvement with the company.
Tosari even signed a plaque marking the construction of the Al-Abror Mosque, built by the company in Sasagaran village in Sukabumi in January 2001.
Other signatories were Sukabumi regent Maman Sulaeman and Ramli.
Vice President Hamzah Haz, who chairs the PPP, has proposed that the government take over QSAR, claiming that the company was "a legitimate business that needed the government's help". This is despite the fact that it collapsed due to irregularities and mismanagement.
Hamzah and People's Consultative Assembly Speaker Amien Rais were among the senior politicians who visited the company in the past. Their visits gave the company widespread publicity, thus allowing it to raise even more funds from the public.