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Bob Hasan held in graft probe

Source
Straits Times - March 29, 2000

Jakarta – A close friend of former president Suharto was detained yesterday by the Attorney-General's office in connection with an investigation into the alleged misuse of funds involving an Indonesian government contract.

Mohamad "Bob" Hasan, the former trade minister and Suharto's golfing buddy, was held for questioning over a forest mapping concession. No charges have been laid. "We will detain him for 20 days ...," said Mr Suhandojo, the spokesman for the A-G's office.

The A-G's office is questioning Hasan over allegations that one of his companies, PT Mapindo, misused state funds. Mr Chairul Imam, the office's director of corruption crimes, said: "Bob Hasan's company was ordered by the Ministry of Forestry to make aerial maps of Indonesian forests. It did not give the result it promised ... and we are talking about billions of rupiah here.

"He caused losses to the state but he could not specify the amount of money involved. We will need the state auditors for that."

Hasan told reporters after being grilled for six hours at the A- G's office in central Jakarta: "I'm now a detainee, so please ask my lawyers." The A-G's office said the detention could be extended if the investigating team considered it necessary.

Hasan's conglomerate depends mostly on the timber business, and enjoyed vast and lucrative business privileges under Mr Suharto.

The arrest is part of Attorney General Marzuki Darusman's ongoing campaign against high-level corruption during Mr Suharto's 32- year reign and the 17-month term of Dr B.J. Habibie, his successor as head of state.

Hasan has been questioned several times since Mr Suharto's ouster two years ago. He enjoyed a virtual monopoly over one of the most profitable sectors of the Indonesian economy. He is one of the largest single debtors of the Indonesian Bank Restructuring Agency – a state agency set up to revive Indonesia's graft- ridden banking system. The agency says he amassed debts of more than US$710 million (S$1.2 billion).

Mr Suharto, himself, is to be questioned tomorrow on unrelated charges of misusing funds belonging to several charitable foundations.

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