Ex-health minister faces trial for alleged embezzlement

Irawaty Wardany, The Jakarta Post, Jakarta | Thu, 12/17/2009 3:15 PM

Former health minister Achmad Sujudi is facing up to 20 years jail term in an alleged corruption in health ministry's procurement project in 2003-2004 that had caused Rp 104,46 billion (US$11,05 million) in state loses.

“The defendant Achmad Sujudi is allegedly involved in a corrupt scheme along with (President Director of PT Kimia Farma) Gunawan Pranoto and (Director of PT Rifa Jaya Mulia) Rinaldi Yusuf at the ministry’s health equipment procurement project in 2003-2004,” Prosecutor Muhibuddin read the indictment at the Corruption Court on Thursday.

The prosecutor said that in 2003, the defendant had directly appointed state owned health firm PT Kimia Farma to be supplier in the ministry’s health procurement projects for Eastern Indonesia and for Indonesian Red Cross.

Existing regulation states that procurement project in government institutions should go through tender auction.

The company later appointed PT Rifa Jaya Mulia as partner in the project. In October, Gunawan and Rinaldi determined price of the equipment they would provide in the project totaled Rp 193,97 billion, marking up the prices. The value was later reduced into Rp 190,45 billion after a negotiation between the supplier and the minister’s officials.

Gunawan and Rinaldi also subcontracted the project to four other companies; PT. Berca Indonesia, PT Prima Semesta Internusa, PT Arun Prakarsa Indonesia and PT Penta Valent.

PT. Rifa Jaya Mulia allegedly accepted Rp 28.32 billion in “illegal” benefit in project, PT. Berca Indonesia Rp 5.39 billion, PT. Prima Semesta Internusa Rp 6.64 billion, and PT Penta Valent Rp 91 million.

“Gunawan also gave Rp 200 million to the defendant, while Rinaldi gave him Rp 500 million,” said prosecutor Risma Ansyari.

Gunawan also gave between Rp 25 million to Rp 700 million to a number of Health Ministry’s officials.