Witnesses claim Goro owes Rp 8b in unpaid rent

JAKARTA (JP): Two witnesses testified at the South Jakarta District Court on Monday that wholesaler PT Goro Batara Sakti had not paid rent totaling Rp 8 billion (US$1 million) on premises used by the State Logistic Agency (Bulog) in the period between 1995 and 1998.

Yacob Ishak and Suhadi, respectively Bulog's head of finance and head of the budget department, said the unpaid fees were for the rent of two multipurpose warehouses owned by a private firm in Kelapa Gading, North Jakarta.

The rent was arranged by Goro in exchange for the use of four of Bulog's warehouses in Kelapa Gading, he said.

"Goro paid the rent only for the first year, but not for following years," said Yacob, who testified against Hutomo "Tommy" Mandala Putra, the youngest son of former president Soeharto. Tommy is being tried on corruption charges.

Seven Bulog warehouses were demolished to make way for Goro's wholesale market, thereby causing Bulog losses of Rp 4 billion, he said.

He said Goro reimbursed Bulog Rp 4 billion last month, just one month after its cooperation agreement was canceled by Bulog's new chief Rahardi Ramelan.

The other witness to testified, Suhadi, told a similar story to Yacob's.

The two witnesses also said the cooperation agreement on the land exchange between Goro and Bulog violated a finance ministerial decree, which stipulates that exchanging state land has to be conducted through an open tender.

Both Suhadi and Yacob did not know whether Goro had been appointed by Soeharto to become Bulog's partner, thereby eliminating the need for an open tender.

Last week, Sukarno, an employee of the Ministry of Finance, also testified that the cooperation violated the ministerial decree.

Tommy was indicted for his alleged involvement in a Rp 95.4 billion corruption scandal linked to the exchange of a 50-hectare plot of land belonging to Bulog.

Prosecutor Fachmi said in his indictment that Tommy and former Bulog chief Beddu Amang signed the agreement in 1995, which required Goro to provide a 150-hectare plot of land in the Marunda area, North Jakarta, in exchange for the Kelapa Gading land.

Fachmi said Goro had bought a 71-hectare plot of land in Marunda but parts of it were bought with Bulog money at Rp 36 billion.

He said Goro had borrowed Rp 20 billion from Bank Bukopin with a cash guarantee to buy the remaining parts of the land.

The deposit was seized and withdrawn by the bank after Goro defaulted on the Rp 20 billion, he added. (jun)