F

ormer Karanganyar regent Rina Iriani Sri Ratnaningsih underwent her first hearing at the Semarang Corruption Court on Tuesday regarding her alleged involvement in a graft and money-laundering case.

In a hearing presided over by judge Dwiarso Budi Santiarto, prosecutors indicted Rina, a politician from the Indonesian Democratic Party of Struggle (PDI-P), along with her former husband Tony Iwan
Haryono, for misappropriating funds intended for a housing development.

Prosecutor Sugeng Riyanto said that the Public Housing Ministry had disbursed RP 35.7 billion (US$3.1 million) for the development of the Griya Lawu Asri (GLA) housing complex in Dukuh Jeruksawit, Gondanglegi, Karanganyar, as well for the renovation of modest homes in the regency.

The funds were channeled through the Sejahtera Multi-Purpose Cooperative (KSU Sejahtera).

'€œIt appears that some of the subsidized funds were used for the defendants'€™ personal interests,'€ Sugeng remarked.

Sugeng said that Rina was believed to have embezzled Rp 18.8 billion, which was used for her household needs, her campaign to become regent in 2008 and to pay car installments.

Sugeng added that Rina was believed to have recommended the cooperative in the subsidy proposal to the Public Housing Ministry. The recommendation did not get verification or approval from the local cooperatives office, in which Tony served as chairman of the cooperative'€™s supervisory board.

Sugeng added that despite being appointed to disburse the funds, KSU Sejahtera did not meet the requirements as a financial institution.

When the funds were disbursed in 2007, Rina was listed in the State Official Assets Report (LHKN) as the richest official in Central Java with assets reaching Rp 60.3 billion.

Despite being named a suspect in Nov.ember 2012, Rina, who is defended by noted lawyer O.C. Kaligis, has yet to be detained.

The GLA housing project has been postponed due to the fraud allegations. Three other persons have been convicted, including Tony.

The KSU Sejahtera head in 2007, Fransisca Riana Sari, was convicted to two years, the KSU Sejahtera head in 2008, Handoko Mulyono, was sentenced to four years, while Tony was sentenced to five years and 10 months.

Rina'€™s lawyer Muhammad Taufiq raised objections against the indictment, saying the charges were weak.

The graft case involving the Karanganyar regent, who served for two terms between 2003 and 2013, has aroused considerable public interest.

The Corruption Eradication Commission (KPK) has recorded all the court processes involving the former state administrator, confirmed KPK spokesman Johan Budi Prasetyo.