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Law Corruption
Bachtiar Chamsyah is named a suspect in the procurement of cattle and sewing machines that caused significant state losses.
BACHTIAR Chamsyah looked depressed as he talked to reporters at the end of last week’s Friday prayers at the Al-Azhar Mosque at Kebayoran Baru in South Jakarta. The former Social Affairs Minister, in mourning over the recent death of his wife, was named by the Corruption Eradication Commission (KPK) a suspect in a fraudulent procurement of cattle and sewing machines that caused losses in the billions of rupiah to the state.
Bachtiar told the reporters he was surprised being named a suspect, adding that he knew of it only from a staff member at his office who happened to watch a news program about the KPK decision on television. Earlier on Monday KPK spokesman Johan Budi said Bachtiar, a 64-year-old native of Padang Tiji, Sigli, in Aceh, had been named a suspect since January. “But it was only now made public.”
The case has been investigated by the KPK since 2007. Seventy graft cases were found by the Supreme Audit Agency (BPK) in the Social Affairs Department in the course of investigation in the second semester of 2005 with a total loss of Rp287.8 billion in state funds. Aside from the fraudulent procurement of cattle and sewing machines, the BPK also found indications of misuse of funds by agencies under the department. Bachtiar was Social Affairs Minister under the two previous governments.
Procurement of the cattle was part of a government program to help the poor with funds drawn from the 2004 State Budget. Suppliers were directly appointed without tender on recommendation by Mulyono Machasi, Director for Social Assistance, per letter No. 48D/BP-BSFM/IX/2004 dated 9 September 2004. A total of 2,800 head of cattle were to be procured. PT Atmadhira Karya, a company owned by businessman Iken Nasution, was appointed to supply the required number. Each head of cattle cost Rp6 million, bringing the amount paid by the department for the total number to Rp19.4 billion.
Procurement of the sewing machines was also part of the same program. A total 6,000 sewing machines was to be procured for Rp51 billion. PT Ladang Sutera Indonesia, a company owned by businessman Muzfar Azis, was appointed to supply the machines under contract No. 21/HUK/2004 dated 29 March 2004 signed by Bachtiar and Mustar.
According to Johan, the two contracts caused a total loss of Rp27.8 billion in state funds, including Rp24 billion in the sewing machine contract which was worth Rp51 billion and Rp3.8 billion in the Rp19.4 billion cattle contract.
Johan said Bachtiar, a leading member of the United Development Party, faced criminal charges under the Law on Corruption and the Criminal Code. Dozens of people have been investigated, including Amrun Daulay, former Director-General of Social Security, Iken Nasution, his director Karya Suharto, and Musfar Aziz.
In its report for the second semester of budget year 2005, BPK said the sewing machines procured were ineffective as they consumed much electricity in operation. As a result many were left unused. Equally ineffective was the cattle procurement. The number of cattle provided to breeders continued to decrease. It did not increase as expected.
Tempo sources said the two cases were shelved by the KPK then under Antasari Azhar, allegedly at the urging of Sigid Haryo Wibisono, a staff member at Bachtiar’s office and a person close to Antasari. Both Antasari and Sigid have since been detained on charges of complicity in the murder of Nasarudin Zulkarnen, Director of PT Putra Rajawali Bajaran. The cases resurfaced when Bonaran Situmeang, lawyer for Anggodo Widjojo, a suspect in a bribery case, brought them to public attention. Alarmed by Situmeang’s revelation, the KPK reopened the cases.
According to the same source, KPK members were divided over the cases. Some wanted them reopened, others wanted them to remain closed. KPK member Muhammad Jasin denied the report. “That’s not true,” he said. “In dealing with the cases, we continue to gather evidence, not because of any pressure from outside.”
At the same time the Attorney General’s Office also investigated the cases. “Investigation was discontinued after the KPK took over the cases,” said Marwan Effendy, Deputy Attorney General for Criminal Acts.
INVESTIGATION by Indonesia Corruption Watch found indications of marked-up prices. ICW investigator Adnan Topan Husodo said Rp3.2 million paid per sewing machine by the department was too high a price. The department paid a total of Rp17.8 billion for the number of sewing machines it bought. PT Ladang Sutera Indonesia, supplier of the sewing machines, paid only Rp6.7 billion to the producer, computed at a price per unit of US$110-170 at an exchange rate of Rp9,000 to the dollar. That price, said Adnan, could have been even lower as the sewing machines were imported free of import duties and value-added tax. The facility was granted by the Finance Department per letter No. 41/KMK.010/2005. Total taxes exempted amounted to Rp1.3 billion. All in all, Adnan said, the department overpaid Rp12.4 billion to the supplier. Aside from inflated prices, ICW also charged the Social Affairs Department with violating Presidential Decree No. 80/2003 on government procurement of goods and services as the supplier was directly appointed without tender. ICW also found that the sewing machines were produced under a special brand. “No sewing machines of the Jitu brand were found on the market,” said Adnan, adding that ICW has reported its findings to the KPK. Bachtiar denied all the charges, saying that he had done nothing wrong, that it was not he who recommended that the procurement be made by direct appointment, and that he was not involved in the procurement process. “I only received, and signed my approval to the documents submitted by my subordinates,” said Bachtiar. “I’m thinking only in a positive way and take it that the process followed was correct.” Bachtiar said it was Amrun Daulay who recommended direct appointment of the suppliers and that he gave his approval after being told what was being done didn’t violate the law. Only later, he added, did he learn that it was wrong. “As a minister, of course, I am morally responsible. But in a bureaucracy, responsibilities are borne each according to the authority conferred on the bearer.” Bachtiar told Tempo that the sewing machines had been acquired at higher price because of the royalty the department had to pay to the owner of the trademark apart from the transportation costs, harbor loading and unloading charges, costs of making boxes, dynamos, and operator training. Daulay declined to comment on Bachtiar’s charges. “Please, let me not say anything now.” he pleaded. So did Nasution, saying he didn’t want to enter into a polemic with Bachtiar in the media. “I’m sure I have done nothing wrong,” he said in an SMS to Tempo. Ramidi, Anton Aprianto, Munawwaroh |
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