Witness claims Soeharto played role in graft case

Witness claims Soeharto played role in graft case

JAKARTA (JP): A witness in the multimillion dollar graft trial
of timber baron Mohamad "Bob" Hasan told a court hearing on
Monday that in 1992 then president Soeharto ordered that a
forestry mapping permit be granted to a firm belonging to the
defendant.

"I was ordered by then president Soeharto not to give security
clearance, which allows for forestry mapping and shooting of
(forest) aerial photographs, to any other firm other than PT
Mapindo Parama (MP)," former director general of forestry
inventory and planning at the Ministry of Forestry, Soenarsan
Sastrodimitro, told the hearing at the Central Jakarta District
Court presided over by Judge Subardi.

Prosecutors have accused Hasan of causing the state US$75.62
million in losses and $168 million in losses to the Association
of Indonesian Forest Concessionaires (APHI), via a fraudulent
mapping project which was not preceded by an open tender.

Soenarsan said he was specifically ordered by Soeharto, in a
meeting on how APHI would coordinate the defendant's firm in
carrying out the 1989 mapping project, at the presidential palace
in November 1992.

"Soeharto told me in front of everybody at the 'expose' that I
should stop issuing permits for any other firm, except for that
of the defendant," he said.

The defendant, who chaired APHI from 1989 to 1998, initially
granted the project to PT Adikarto Printindo (AP) in 1989, a firm
whose shares he eventually bought in full and whose name he
changed to PT Mapindo Parama in 1991.

"The then forestry minister, Hasjrul Harahap, also ordered me
to recommend only one firm -- the defendant's firm -- for the
project, despite the firm's obvious inability to complete the
project single-handedly," the witness, who was director general
from February 1989 until June 1993, said.

The project involved the mapping and shooting of aerial
photographs of 88.63 million hectares of forest concessions
belonging to 599 concessionaires.

However, Soenarsan said, the work done by MP was carried out
too slowly since it was handling the project alone.

The witness admitted to having recommended PT AP to the
forestry ministry, saying that it was the minister's wish.

"PT AP worked by the rules, but it was only one firm. It
should have worked with more firms ... I recommended 18 reputable
consulting firms, including PT AP, but the minister picked only
PT AP," Soenarsan said.

"I also told the minister that concessionaires were all scared
of Bob Hasan ... and that they really did not want him in charge
of the project. But it was no use."

Soenarsan also told the hearing that officials of Hasan's
company had been seen trying to extort money from
concessionaires.

"I immediately reported this to the minister, whom I believe
informed you (Hasan) of the matter. To my knowledge, the minister
told me that upon hearing the news, you (Hasan) fired those
officials," he said.

He said he had no idea about the disbursement of $87 million
from the reforestation fund which was used for the aerial mapping
of protected forests.

"Such a project did not happen until 1996, by which time I was
already retired. In general, the use of reforestation funds must
be legalized by the president," he said.

Soenarsan said that the permit issued by the forestry ministry
was for the mapping and shooting of aerial photographs for
concession areas belonging to only 81 of the 599 companies, or
8.85 million hectares of forest concessions.

"The defendant also carried out the photographing project, by
making forest concessionaires pay $2 per cubic meter of logs
bound for export," Soenarsan said.

"While 75 companies paid before the photographs were taken,
six state-owned forest companies refused. They were allowed by
the Ministry of Forestry to postpone payment until after delivery
of the photographs.

"Since they never received the photographs, they never ended
up paying."

He identified the six companies as state-owned forestry
companies PT Inhutani I in East Kalimantan, PT Inhutani II in
South Kalimantan, PT Inhutani III in Central Kalimantan, PT
Inhutani IV in North Sumatra, PT Inhutani V in South Sumatra and
state forestry firm Perum Perhutani.

Earlier APHI said that it had paid MP $2.49 per photographed
hectare, whereas in comparison, Perum Perhutani used another
firm's services and paid only $1.80 per photographed hectare.

Chief prosecutor Arnold Angkouw repeatedly implied at the
hearing that Mapindo had marked up the contract for the mapping
project.

Another witness, Haposan Simatupang, who is an auditor at the
ministry's inspectorate, told the hearing that auditors had found
a circular dated Sept. 1, 1988, one year before the defendant, as
APHI chairman, granted the project to PT AP.

"The letter, signed by the defendant, was addressed to the
executive board of the Association of Indonesian Wood Panel
Producers (Apkindo) informing it that $2 per cubic meter of logs
bound for export should be paid as fees by forest
concessionaires," Haposan said.

When asked who was the Apkindo chief then, Haposan answered:
"the defendant". (ylt)