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Flying into a storm

Source
Tempo - June 1-7, 2004

Ahmad Taufik, Yuswardi A. Suud, Banda Aceh – Investigations into allegations of corruption linked to the purchase of electrical generators and a helicopter have begun. Governor Abdullah Puteh is finding himself painted into a corner.

The Governor of Nanggroe Aceh Darussalam, Abdullah Puteh, has earned himself a new title. Having recently been placed in charge of "civil emergency" in Aceh, Puteh may soon be able to add the title "corruption suspect" to his resume.

Last Friday, National Police Headquarters in Jakarta announced that they had received permission from President Megawati Sukarnoputri to investigate the former chairman of the Indonesian National Youth Committee. "We will commence investigations as soon as possible," said police spokesperson, Insp. Gen. Paiman. Police must first gain permission from the president before investigating high-ranking government officials.

Could this be the beginning of the end for Puteh? During his posting as Governor of Aceh commencing 2001, Abdullah Puteh has adroitly managed to evade a series of corruption allegations directed at him.

One such case, to be investigated by National Police HQ, concerns allegations of corruption in the purchase of the Lueng Bata electrical power station in Banda Aceh. This Rp30-billion state-funded project was aimed at supplying electricity to residential houses throughout the Banda Aceh region.

However, the State Electricity Company (PLN) claims that it can no longer afford to install electricity for the public after several electrical relay stations were destroyed during fighting between Indonesian Military (TNI) soldiers and Free Aceh Movement (GAM) troops.

More recently, indications of foul play linked to the purchase of the generators have surfaced. Originally, electricity contractor and legal attorney of the CV Sari Alam Company, William Taylor, was entrusted with the task of providing electrical generators for the project on September 27, 2002.

Strangely, the money used to purchase the generators was issued directly from the provincial government budget. In effect, the provincial government was extending credit for the project.

This allocation of funding was approved by the Aceh regional government one month later and channeled to Sari Alam through the Aceh regional government bank. Controversially, these funds had originally been allocated for educational assistance.

The fund transfer was smooth. Governor Puteh originally ordered the transfer of Rp14 billion in funding, Rp3 billion of which was transferred directly to the President Director of PT Seulawah Air NAD, a flight company owned by the Aceh provincial government. Two weeks later an additional Rp8.5 billion was transferred to Sari Alam, via William Taylor. Rumors have since surfaced that a portion of the funds were channeled to the bank accounts of several government officials in Aceh.

Ironically, following the fund allocation and the subsequent installation of 24 electrical generators, the majority of local residences had still not received electricity. Evidently, the generators installed did not fulfill the required power outage. Moreover, the funding allocated to purchase additional generators was never accounted for. Finally, prominent public figures reported the situation to the Regional Emergency Military Control HQ. At the time, Aceh was still under martial law, having been declared "military emergency" status.

Military personnel managed to track down the chain of corruption by interrogating a number of witnesses. Taylor himself admitted that the capacity of electrical generators installed did not account for the amount of funding allocated to the project. In fact, Taylor told police that several of the generators had been destroyed.

The martial law administration took immediate action. Chief of the Aceh Provincial Government Finance Bureau, T.M. Lizam, was arrested on April 10, 2004.

The following day, investigations over William Taylor were initiated, triggering a domino effect of investigations over suspected corrupt government officials. Lizam, who was formally arrested, was finally released but Taylor was recently declared a corruption suspect.

In the meantime, Governor Puteh must have felt as though he had received an electric shock, having been also declared a corruption suspect. When Aceh's military emergency status was dropped to civil emergency status, Puteh found himself in charge of civil emergency control. But, this time Puteh could not manage to evade corruption allegations. Puteh's case, which was originally only handled by regional police has now been taken over by National Police HQ.

According to Anti-Corruption Public Solidarity (Samak) Coordinator, J. Kamal Farza, corruption allegations against the governor have since surfaced in connection with several other cases. Investigations carried out by Samak suggest that Puteh was also involved in other corruption scandals. Puteh has been accused of playing a role in the misappropriation of state funds during the purchase of plantations in the Tamiang Hulu and Julok districts in East Aceh. Puteh is also facing allegations that he misappropriated mining assistance funds from state-owned oil company Pertamina. Finally, allegations have emerged that Puteh considerably marked up the price of a helicopter purchased from Russia on behalf of the regional government.

To date, police have only begun investigating the corruption allegations filed in connection with the Sari Alam case. Insp. Gen. Paiman said that police are determined to uncover the truth behind this case and are already in possession of considerable evidence. "Investigations into other corruption charges will be carried out in accordance with the developments of the current investigation," said Paiman. As for the helicopter markup scandal, Paiman said, "The Commission for Corruption Eradication is handling that case."

Separately, Commission for Corruption Eradication (KPK) Deputy Chairperson, Erry Riyana Hardjapamekas, confirmed that the KPK is currently investigating the helicopter markup scandal. "This week, three regional legislative council members and four Aceh Darussalam Provincial Government members will be investigated," said Erry.

With the KPK on the case, Governor Puteh may be finding himself increasingly cornered. The KPK wields far greater authority than either the police or the prosecutors office to investigate corruption suspects. Unlike the police or the prosecutors office, the KPK can investigate and arrest government officials without having to first request permission from the president.

The helicopter scandal has indeed haunted Puteh. In 2002, the Aceh Provincial Government purchased a MI-2 helicopter from Russia for US$1.2 million.

This helicopter was purchased through PT Putra Pobiagan Mandiri. Governor Puteh allocated Rp3.5 billion of the regional budget towards purchasing the helicopter.

The remaining amount of funds was taken from 13 Aceh districts. Each district was called upon to provide Rp700 million to help cover the cost. However, reports later emerged that the local government had paid over twice the market value of the helicopter.

With investigations into corruption cases coinciding simultaneously, both the KPK and the police have their work cut out. In fact, last Thursday a special restricted cabinet meeting was held to divide out the workload. During the meeting it was decided that police would handle the electrical generator corruption case while the KPK would handle the helicopter markup scandal.

"This is our first case, and we already have considerable evidence. But we can only investigate the transfer of funds after declaring the accused a suspect," said Erry Riyana.

The Aceh Regional House of Representatives (DPRD) has expressed positive support for investigations into the corruption charges. DPRD member, M. Nasir Djamil, said that the DPRD strongly supports the KPK and the police in their endeavors to investigate the cases. "We hope that the president will issue permission for police to initiate investigations over Abdullah Puteh," said Djamil.

However, Governor Puteh has denied any knowledge of presidential permission for police to commence investigations over him. "I have not been told that I will be investigated as a suspect," said Puteh, adding that he was willing to be investigated anytime, either in Aceh or in Jakarta. In fact, Puteh said that he hoped that the investigation process would be speedy. "I am anxious to respond to all of the charges in order to speed up completion of the case," said Puteh.

However, Puteh refused to comment on the charges made against him by police, the KPK, and a number of NGOs. "I will present counter-evidence to investigators on a case by case basis. If I don't give explanations, people will become more suspicious," he said.

One problem for investigators is Puteh's status as governor. This has been a stumbling block for investigators in the past. In fact, students from the Syiah Kuala University in Banda Aceh, have petitioned President Megawati to request that Governor Puteh be temporarily dismissed from duty. "So that investigations into the corruption charges can be carried out transparently," explained Zulfikar, a university activist.

Abdullah Puteh himself has refused to step down from his post, maintaining his innocence in the face of all allegations. "Rumors of corruption have been deliberately concocted by irresponsible parties intent on taking me down," he claimed. Puteh may have unwittingly flown straight into a storm of reformation with his new Russian helicopter.

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