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Generals 'knew nothing' about $180 million tank scam

Source
Jakarta Post - March 22, 2005

Tony Hotland, Jakarta – Two retired military generals stated on Monday they had played no part in alleged corruption in the procurement of a total of 100 British Scorpion tanks in the 1990s.

Speaking during a hearing with House of Representatives Commission I for defense and foreign affairs, Gen. (ret) Wismoyo Arismunandar and Gen. (ret) R. Hartono said they had no involvement in and little knowledge of the details of the procurement process.

Wismoyo, who was the Army's chief of staff in 1995, signed the first procurement letter; while Hartono, who replaced Wismoyo a year later, signed the second procurement letter.

But they had signed the letter on behalf of then minister of defense, they said.

Both said the Army only submitted a list of its needs for armored vehicles to the Ministry of Defense at that time, and it was the ministry that fully arranged and managed the purchase.

The statements contradict the ministry's director general of procurement, Maj. Gen. (ret) Aqlani Maza, who said the ministry did not deal with the purchase or the payment at any level.

The procurement made the headlines last year after British newspaper The Guardian reported that British tank manufacturer Alvis Vehicle Ltd. had paid 16.5 million (about US$33 million) to the eldest daughter of former president Soeharto, Siti Hardiyanti "Tutut" Rukmana, in bribes to help secure a 160 million purchase contract.

Tutut, who also attended the House hearing, continues to insist on her innocence in the case. She said she had knowledge whatsoever of the process or the activities, although her brokerage company PT Surya Kepanjen was appointed as the contractor in the purchase.

Tutut is believed to have taken bribes as she was also seen in London during the time of the purchase process with Hartono and Alvis executives.

"Yes, I met with them – but I just happened to be in London as my colleagues and I were on a mission with an international blood donor organization. I accepted their invitation simply to be nice," she told the hearing.

The purchase also raised suspicions of a possible abuse of state funds since Indonesia paid US$2.5 million for each tank, while Singapore and Thailand – which bought exactly the same type of tanks at the same time – paid $1 million.

Surya Kepanjen director Widorini Soekardono said the Scorpion tanks that Indonesia bought were of a higher quality and had more features.

During the session, a number of House commission members proposed the establishment of a working committee to investigate the case in a more focused way.

They also said they would seek information from the Ministry of Finance, the Office of the Coordinating Minister for the Economy and the National Development Planning Agency, who played roles in the disbursement of state funds.

The Corruption Eradication Commission (KPK) is currently collecting data and evidence to launch an investigation into the case.

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