Two tried in $9.3m construction scam
Two tried in $9.3m construction scam
JAKARTA (JP): A prosecutor asked the Central Jakarta District
Court on Monday for jail terms of six years and five years
respectively for a developer and official charged in a US$9.3
million scam in the construction of a condominium project.
Prosecutor Hamid Thahir also asked the court to order
defendants Seno Margono, alias Tjiong Tjek Seng, president of
private developer PT Duta Adhiputra, and Hindro Tjahjono
Soemardjan, director of the government-controlled Kemayoran Area
Development Board, to pay Rp 9.1 billion ($1 million)
compensation.
"We consider it a crime in the development of the condominium
instead of a civil case," Hamid said.
The defendants also showed no remorse, he added.
He declared the defendants violated Article 1 (a) of
Corruption Law No. 3/1971 which carries a maximum penalty of a
life sentence and/or Rp 30 million fine.
Hamid stated in the indictment that the defendants illegally
used a 25,000-square-meter plot of state land in Kemayoran,
Central Jakarta, as collateral for bank loans.
He said use of the land to obtain collateral was illegal since
it was not approved by then minister/state secretary Moerdiono.
Seno used land certificates to acquire loans amounting to Rp
65 billion from a bank syndication led by Bank PDFCI, he said.
Seno, a son-in-law of businessman Hendra Rahardja, the owner
of the BHS Group, used Rp 48 billion of the loan to further his
company's interests, he said.
Hamid said Seno and Hindro signed a cooperation agreement on
March 17, 1993, to construct the condominium project with a
capital commitment of $61.87 million.
He said that under the agreement, the board would provide the
Kemayoran plot worth $9.37 million as part of the capital, while
Seno would provide the remaining $52.5 million capital
commitment.
Seno never provided the capital and, allegedly with Hindro's
approval, converted the status of the land from a state asset
into a company assets to acquire the loan, he said.
Presiding judge Poerwanto adjourned the trial for two weeks to
hear the defendants' plea. Both defendants have been remanded in
custody. (jun)