Using Telkom's dividends for Wisnu project illegal<\/p>\n
JAKARTA (JP): Using the government's dividends from PT Telkom
\nto finance the construction of a giant Garuda in Bali is not
\nlegal, according to the government's audit agency (BPKP).<\/p>\n
The audit agency's chairman, Soedarjono, said that the use of
\nthe dividends for the construction of the statue was illegal,
\nregardless of the fact that it was approved by the company's
\nshareholders.<\/p>\n
\"It is illegal for dividends of a state-owned company to be
\nused by the ministry which oversees it. It violates procedure,\"
\nhe told the press Thursday.<\/p>\n
The shareholders of Telkom, which went public on the Jakarta,
\nLondon and New York stock exchanges last October, approved the
\nmanagement's proposal to set aside around Rp 30 billion of the
\ncompany's dividends to help finance the government-sponsored
\nproject.<\/p>\n
The 130-meter tall Garuda Wisnu statue, depicting the Hindu
\nGod Vishnu on his mount, the mythical Garuda bird, will be built
\nin a 200-hectare park in Bukita Ungasan, Badung, in the southern
\npart of Bali.<\/p>\n
Giant<\/p>\n
The giant statue will cost around Rp 80 billion and the
\ndevelopment of the 200-hectare park will cost around Rp 200
\nbillion (US$86 million).<\/p>\n
Minister of Tourism, Post and Telecommunications Joop Ave had
\nearlier insisted that using Telkom funds for the project was
\nperfectly legal.<\/p>\n
He said the use of the dividends had been approved by the
\ncompany's shareholders at the annual shareholders meeting last
\nyear.<\/p>\n
Soedarjono, however, argued that the approval of the company's
\nshareholders was not enough to legitimize the use of Telkom's
\nfunds for purposes other than projects stipulated in the budget
\nplan.<\/p>\n
He said that this abuse of state funds could not be tolerated
\nbecause it would not only affect the government's budgetary
\nprocedures but could also widen the financial gap between
\nministries.<\/p>\n
If such practices were tolerated, they would incite jealousy,
\nespecially at those ministries which have no direct control over
\nstate companies. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/using-telkoms-dividends-for-wisnu-project-illegal-1447893297",
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"sponsor": "Okusi Associates",
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