Aceh governor under scrutiny for alleged fund mismanagement

Tiarma Siboro, The Jakarta Post, Jakarta

The central government is investigating Aceh Governor Abdullah Puteh for alleged misappropriation of general allocation funds for the conflict-torn province, a minister said on Friday.

Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono said that the investigation of Puteh and other Aceh government officials would be conducted in response to information from the public.

"There has been information from the public that the administration has allegedly mismanaged central government funding, but we have to investigate the allegations in order to avoid slander," Susilo said at his office.

He said the government promised to impose stern measures against the officials if the allegations turned out to be true.

There has been no formal talk either at the ministerial or Cabinet level on the possibility of dismissing Puteh, Susilo said.

The provincial administration under Puteh, who was sworn in as governor in December 2000 and is due to end his term in 2005, has come under fire for its failure to fight corruption and to improve political and economic conditions in Aceh over the past two years.

In the 2002 fiscal year, Aceh received Rp 2.2 trillion from the general allocation fund and another Rp 1.87 trillion from the profit sharing of oil and gas revenues.

For the 2003 fiscal year, the province, which is home to 4 million people, will obtain Rp 2.3 trillion from the general allocation fund, while profit sharing is expected to rise to Rp 3 trillion.

Under the special autonomy status, Aceh obtains 80 percent of the revenue sharing from the exploitation of its natural resources.

Critics have also slammed the governor for not doing enough to ensure the implementation of the Cessation of Hostilities Agreement, which was signed by the Indonesian government and the Free Aceh Movement (GAM) in December last year to end the 26-year conflict in the province.

The investigative team, led by Minister of Home Affairs Hari Sabarno and involving the Development Finance Comptroller (BPKP), was set up in late March. The investigation is being conducted in Aceh and Papua.

Susilo said once the investigation was completed and if the allegations turned out to be true, the government "would not hesitate to impose stern sanctions (against Puteh)".

It remains unknown when the investigation will finish.

Aceh and Papua are the only regions among the country's 30 provinces which have been granted special autonomy status. The two regions have been dealing with separatist problems for years.