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Police to question media mogul Dahlan on '€˜fictional paddy fields'€™

The National Police will interrogate media mogul Dahlan Iskan in his capacity as a former state-owned enterprises minister about a bogus develolopment project in Ketapang, West Kalimantan

Fedina S. Sundaryani (The Jakarta Post)
Jakarta
Sat, May 30, 2015

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Police to question media mogul Dahlan on '€˜fictional paddy fields'€™

T

he National Police will interrogate media mogul Dahlan Iskan in his capacity as a former state-owned enterprises minister about a bogus develolopment project in Ketapang, West Kalimantan.

National Police detective division chief Comr. Gen. Budi Waseso told reporters on Friday that the Jawa Pos group boss would be questioned as a witness due to his role in overseeing the project.

'€œWe will soon see [who is the most responsible]. However, he [Dahlan] will definitely be summoned and asked to testify because he was one of those in charge of the project at the time,'€ he said at National Police headquarters in South Jakarta.

Budi said investigators received a report on so-called fictional paddy fields, which led them to investigate the case in April in Ketapang, where they discovered no development project underway.

'€œThe funds kept flowing into the project, but there was no physical result. This is why we are investigating the case. Everyone will be questioned and we will gather all the evidence,'€ he said.

The paddy field project, worth some Rp 317 billion (US$23.9 million), allegedly involves several state-owned enterprises from 2012-2014.

When the project launched in December 2012, Dahlan said the 3,000 hectares of paddy fields would expand to 100,000 by 2014.

State-owned agriculture firm PT Sang Hyang Seri was responsible for the paddy field development with assistance from many other state-owned enterprises, including state-owned construction firms PT Hutama Karya and PT Brantas Abipraya, as well as state-owned engineering and construction consulting firms PT Indra Karya and PT Yodya Karya.

Funds also came from state-owned banks BNI and BRI; state-owned oil and gas company Pertamina; state-owned port operator PT Pelabuhan Indonesia II (Pelindo II); and Jakarta-listed gas distributor PT Perusahaan Gas Negara (PGN).

Budi said investigators had yet to identify which state-owned enterprise funds had disappeared during the project'€™s duration.

'€œWhat is certain is there are state funds that must be taken into account. We suspect there has been foul play in relation to the funds. We cannot be sure how much the state lost, but after we have questioned everyone and confiscated several documents, then we will ask for a formal audit from the BPK [Supreme Audit Agency]. The BPK will determine how much the state lost from the project,'€ he said.

According to Budi, those found guilty of embezzling money could face a maximum prison sentence of 20 years and a fine of Rp 200 million for violating the 1999 Corruption Law.

Meanwhile, director of the anticorruption division at the National Police, Brig. Gen. Ahmad Wiyagus, told reporters that three officials from three of the companies '€” Pertamina, PGN and Pelindo II '€” had failed to answer their summons on Thursday and Friday.

President director of Pelindo II, RJ Lino, also failed to meet the summons as he was overseas.

'€œThe information we received notified us that he was currently abroad,'€ Ahmad said.

He added that Pertamina president director Karen Agustiawan and PGN president director Hendi Prio Santoso had not explained their reason for being absent.

Police investigators have so far questioned more than 20 witnesses in the case, including farmers, village heads and the chiefs of neighborhood units in Ketapang.

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