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Wednesday, March 24, 2010

KPK questions high-ranking official in graft case involving ex minister

Arghea Desafti Hapsari, The Jakarta Post, Jakarta | Tue, 03/23/2010 7:47 PM

The Corruption Eradication Commission (KPK) has summoned a top brass official at the Social Affairs Ministry as a witness for former minister Bachtiar Chamsyah, a suspect in a multimillion dollar corruption case.

The ministry’s secretary-general Ghazali Situmorang underwent questioning over possible graft in the ministry’s purchase of sewing machines, cattle and sarongs, conducted during Bachtiar’s term.

Ghazali said he was summoned to the KPK to turn in documents related to the cases.

“I was handing over several correspondence documents [relating to] the direct appointment,” he added.

The KPK alleges Bachtiar to have directly appointed a company to procure 6,000 sewing machines in 2004 to assist home industries in the country instead of people living in poverty.

That same year, the ministry also appointed a company to import 2,800 cows from Australia. The KPK suspected only 1,900 had been shipped.

He also allegedly inflated the price of the goods.

Based on the KPK’s preliminary estimation, the sewing machine procurement cost the state Rp 24 billion (US$2.7 million), while the cattle import cost a further Rp 3.6 billion.

The KPK also named Bachtiar a suspect in a corruption case involving the purchase of sarongs worth Rp 25 billion, which took place from 2006 and 2008. State losses from the alleged graft are estimated at Rp 11 billion.

Bachtiar is now the secretary-general of one of the United Development Party (PPP). He became minister in 2001 under the administration of former president Megawati Soekarnoputri.

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