Witnesses claim Goro owes Rp 8b in unpaid rent

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The deposit was seized and withdrawn by the bank after Goro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)