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Jakarta Post

Money binge in Hambalang graft case

Money binge in Hambalang graft case
Hans Nicholas Jong
Jakarta   ●   Fri, November 8, 2013

The first trial hearing in the Hambalang graft case on Thursday at the Jakarta Corruption Court revealed that cash collected from rigging the project flowed to numerous politicians and government officials.

Corruption Eradication Commission (KPK) prosecutors said in their indictment that recipients of embezzled funds included former Democratic Party (PD) chairman Anas Urbaningrum and two close confidants of President Susilo Bambang Yudhoyono '€” former youth and sports minister Andi Mallarangeng and former head of the National Land Agency (BPN) Joyo Winoto. Also implicated were member of the House of Representatives'€™ budgetary commission Olly Dondokambey of the Indonesian Democratic Party of Struggle (PDI-P) and former chairman of House Commission X overseeing sports Mahyuddin MS of the Golkar Party.

The money also went to Andi'€™s younger brother '€” Andi '€œChoel'€ Zulkarnain Mallarangeng '€” a number of officials at the Public Works Ministry and executives from companies that won tenders for the construction project.

In the indictment, Andi was accused of receiving kickbacks of Rp 4 billion (US$352,000) and $550,000, while Anas was alleged to have gotten Rp 2.2 billion. Joyo was accused of taking in Rp 3 billion.

The information was divulged in the indictment of Deddy Kusdinar, who was the chief of financial and internal affairs at the Youth and Sports Ministry. Deddy allegedly received Rp 1.25 billion.

The KPK charged Deddy with Article 2 or 3 of Law No. 31/1999 on corruption, which carries a maximum sentence of 20 years in prison.

It was also revealed that Andi played a major role in the graft, especially in connection to the flow of illicit funds from the project.

Andi'€™s involvement in the Hambalang sports complex project started in 2009, when he took over the project, which had been in limbo during the tenure of his predecessor Adhyaksa Dault.

During the initial stages of the project, Andi, who was once lauded as a rising star in the PD and had won the reputation as Yudhoyono'€™s golden boy, gathered executives from construction companies to design a master plan for the project.

'€œAfter Andi was inaugurated as minister in October 2009, the first presentation on the plan to construct the Hambalang sports complex was given in the minister'€™s meeting room,'€ KPK prosecutor I Kadek Wiradana read the indictment.

In late 2009, Andi convened another meeting at his private residence, which was attended by Wafid Muharam, then a secretary at the ministry, and the executives in question. Wafid has been accused of receiving Rp 6.5 billion in embezzled funds.

In the meeting, Wafid told Andi that the budget for the project could reach Rp 2.5 trillion and that it would be difficult for the ministry to secure such a budget.

Andi responded by saying, '€œRelax, [the lawmakers] in [House] Commission X are my friends.'€

In order to secure the budget target for the project, Andi asked Wafid to work with House Commission X and the Public Works Ministry.

Andi and Wafid then held a meeting with Mahyuddin, Commission X member Angelina Sondakh, Mirwan Amir and Muhammad Nazaruddin.

During the meeting, Andi had said that the revised budget for the Youth and Sports Ministry, which included the allocation for the Hambalang project, had already been taken care of by Wafid.

'€œIf there were complaints [from the lawmakers], then Andi would think that Wafid had failed,'€ prosecutor Kresno Anto Wibowo said.

In 2010, House Commission X approved the budget proposal without holding a proper meeting of the commission and the ministry.

In return for the favor, Wafid allegedly paid Rp 600 million to Mahyuddin during the PD'€™s congress in Bandung in 2010.

After securing the budget, Andi further rigged the project tender process. Gunning for state-owned construction company PT Adhi Karya to win the contract, he held several more meetings, including with Adhi Karya director Teuku Bagus Muhammad Noor. The company finally secured the project with the help of Choel, who demanded a kickback of 18 percent from the project'€™s budget.

After Adhi Karya won the tender, Andi received $550,000 from the company and an additional Rp 4 billion from PT Global Daya Manunggal, one of the companies subcontracted by PT Adhi Karya.

When the project faced a problem securing the land permit necessary to start the construction, Andi ordered Wafid to approach then PD treasurer Nazaruddin and Mindo Rosalina Manulang, former director at Nazaruddin'€™s holding company, Permai Group.