Clove fund embezzlement scandal
From 1992 to 1998,Halid was director of the government-owned Central Unit of Village Cooperatives (Puskud) for Hasanuddin village in Ujung Pandang (now called Makassar),the capital of South Sulawesi province. Puskud Hasanuddin supplied a clove trading monopoly,the Clove Support and Trading Board (BPPC),run by President Suharto's youngest son,Tommy. [6] [7] Under the monopoly,clove farmers were forced to sell to BPPC at massively reduced prices,while the cloves were then sold to cigarette manufacturers at inflated prices. [8]
In December 1995,some 20 farmers,representing 300 clove farmers in Bone Regency,South Sulawesi,protested against alleged fraud,embezzlement,and economic crimes by the Halid family. [9]
Following the fall of Suharto and the dismantling of the clove monopoly in 1998,Nurdin went on trial in December 1998 for allegedly embezzling Rp 115.7 billion from a compulsory savings fund (SWKP,Simpanan Wajib Khusus Petani) of South Sulawesi clove farmers. His acquittal by Ujung Pandang District Court in 1999 sparked protests and claims that Attorney General Andi Ghalib,a former deputy governor of South Sulawesi,had intervened on Nurdin's behalf. Nurdin had previously funded Ghalib's failed bid to become South Sulawesi governor. Gagoek Soebagyanto,the prosecutor who initiated charges against Nurdin and wanted to have him detained pending trial,was dismissed by Ghalib,while another prosecutor involved in the case was transferred to Irian Jaya (now Papua) province. In March 1999,the new prosecutors handling the case told the court that Nurdin should be freed. They claimed there was a legal basis for the criminal act of misusing SWKP funds as collateral for bank credit without the permission of the owners. Judges were criticized for refusing to allow testimony from a key witness,a bank official. [10] In addition to acquitting Nurdin,the panel of judges also ordered the release of confiscated evidence,including his luxury home and a deposit of Rp 8 billion in the name of Puskud Hasanuddin. Judges said that although the four indictments concerned irregularities in clove purchases,irregularities in the release of clove farmers' funds,irregularities in working capital,and irregularities in funding,all payments had been settled. [11] University students,professors,and lecturers protested what they described as "the death of justice". Police responded to one protest by firing live ammunition. [12]
Vietnam rice import customs violation
On August 9,2005,Halid,who at the time was the Chairman of Village Cooperative Unit Center (Inkud),was sentenced to 2 years and 6 months by the North Jakarta District Court,after he was pronounced guilty of violating customs on imports of rice from Vietnam. [17] On August 17,2006,Halid was released after receiving an Indonesian Independence Day remission.
