Witness says Bulog fund used for many activities

The Jakarta Post, Jakarta

The non-budgetary fund of the State Logistics Agency (Bulog) was disbursed for many reasons -- including scholarships for swimming athletes -- a former deputy of finance for the agency testified at the corruption trial of former Bulog chief Rahardi Ramelan on Tuesday.

"The fund was meant to manage basic commodity stability, but it was used to finance various activities as requested by many parties under the approval of Bulog's chief," Ahmad Ruskandar told the South Jakarta District Court.

"While Pak Rahardi was chief, we disbursed funds to the Presidential guard, (former Indonesian Military chief) Pak Wiranto, and Pak Akbar (Tandjung)," he said.

It was also given out "for the development of a science building -- and even to provide scholarships for swimming athletes, as Pak Rahardi was chairman of the Indonesian Swimming Federation," he added.

He acknowledged that Bulog has two balance sheets. The first was for budgetary funds, or the formal balance sheet, while the second was for the non-budgetary fund.

The state audit board (BPKP) had warned Bulog twice in 1999 to merge the funds onto one balance sheet to avoid the possibility of embezzlement, but Bulog ignored it, Ruskandar said.

It was not until June 2, 2000 that Bulog began to audit its non-budgetary fund when Rizal Ramli became the chief.

Rahardi is on trial for his alleged involvement in the embezzlement of a total of Rp 62.5 billion (US$6.25 million) in Bulog non-budgetary funds during his term between 1998 and 1999.

Ruskandar also admitted that Rahardi had ordered him to pay Rp 40 billion to Akbar, who was then State Minister/Cabinet Minister.

"I handed the checks twice directly to Pak Akbar in his Central Jakarta office. I had asked for a receipt, but he said that he would give it to me later," he said.

He said that, while he received the receipt, Akbar asked for it back later on.

Another witness, Jusnadi Suwarta, who was the then-head of Bulog's finance bureau, supported Ruskandar's testimony, saying that Akbar had obtained the checks directly from Ruskandar.

Both Jusnadi and Ruskandar have been named as suspects in the case, while Akbar, now the House Speaker, is currently on trial at the Central Jakarta District Court.

Asked whether he accepted Ruskandar's testimony, Rahardi replied, "I accept any statements which are not against me."

Clad in a green suit, Rahardi looked relaxed during the hearing. He laughed several times when Ruskandar appeared nervous answering questions from judges, prosecutors, and lawyers.

Rahardi's wife, daughter and several relatives, on the other hand, wept when they heard that Rahardi's request for house arrest was denied.

The panel of judges, consisting of Lalu Mariyun, IDG Putra Jadnya and Abdul Madjid Rahim, said that they were still considering the request.

Rahardi is currently being held at Cipinang Penitentiary, East Jakarta.

The scandal has drawn considerable public attention, as it implicated Akbar. It was believed that Akbar first obtained the Rp 40 billion upon former president B.J. Habibie's order to finance Golkar's campaign during the 1999 election.

Akbar, however, claimed that it was used for a charitable program.