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itnesses testified against the former finance director of state owned PT Rajawali Nusantara Indonesia (PT RNI), Ranendra Dangin, who allegedly embezzled Rp 4.6 billion (US$425,550) of company funds in 2004.

One witness, former president director of the agricultural company Rama Prihandana, said the defendant failed to report the use of Rp 10 billion in company money to the president director as required by a government regulation.

"The defendant never reported the distribution of the money," Rama said in his testimony at the Corruption Court on Monday.

Ranendra, now a director at the human resources division at PT Angkasa Pura I, has been charged with misusing Rp 4.5 billion of the company's profits from the purchase of granule sugar between 2001 and 2004 for his own benefit and distributing the stolen money to several PT RNI senior officials as "bonuses".

In this case he has been charged with violating Article 2 (1) of the 2001 corruption law for profiting himself, others or a corporation, Article 3 on violating one's authority and Article 8 on embezzlement.

The case began when PT RNI and state owned logistic company Perum Bulog forged an operational cooperation between February and April in 2003 for the purchase, storage and distribution of 150,000 tons of granule sugar to stabilize sugar prices in the country.

The cooperation generated around Rp 33 billion in profit for the two companies.

Rama claimed the RNI board of directors were aware of the distribution of company money after having received a report from the Supreme Audit Agency (BPK).

Two other witnesses, Prabowo and Meidita - both officials from state-owned Bank Mandiri - said Ranendra withdrew the money several times, including a total of Rp 1 billion on March 11, 2004 which he used to buy Mandiri travelers cheques.

"It was Pak Ranendra and Agus Subekti *head of accounting division of PT Mitra Ogan, a subsidiary of PT RNI* who bought the traveler cheques," said Prabowo.

Ranendra also withdrew Rp 1.4 billion in cash on Feb. 12, 2004 and transferred Rp 125 million to an account in Bank Danamon under the name of Ranendra and Dewi Rustisia on July 19 in the same year.

Ranendra's sister-in law Nila Vera similarly acknowledged that she received seven cheques worth a total of Rp 175 million from Ranendra.

"The money was debt payments from Ranendra to my parents, and I transferred the money to my sister Gitawati's account," she said.