Fri, 05 Nov 1999

Akbar denies Golkar mixed up in bank scandal

JAKARTA (JP): Golkar Party chief Akbar Tandjung denied allegations on Thursday his party was involved in the Bank Bali scandal.

He conceded the party received some Rp 15 billion (US$2.2 million) from businessman M. Manimaren but contended the money was a loan and not a political contribution.

"We are willing to explain to all related parties, especially the National Police and Attorney General's Office, that the funds we received from Manimaren, as described in the unabridged PricewaterhouseCoopers audit, was a loan from Manimaren," Akbar said.

He said Golkar Party accepted the loan from Manimaren because it was in need of funding for its activities and was awaiting donations from other sources.

"We've already started to return the loan in installments with the help of Golkar cadres, sympathizers and donors. I don't know the exact amount, but the party's treasurer knows it in detail," he said.

Coincidentally, Manimaren also holds the post of Golkar treasurer.

Akbar stressed that he instructed the office of Golkar's treasurer to follow all legal procedures in raising funds for the party.

"We can prove that we are innocent," he said, adding that all donations to the party came from legal sources and did not violate the maximum threshold for donations of Rp 150 million per company and Rp 15 million per person.

"If detailed information is needed, Golkar's treasurer is ready to give further information," he said.

Akbar also denied using the disputed funds during the June 7 general election. "We reported our budget for the June general election to the General Elections Committee."

The 1999 Law on General Elections allows the Supreme Court to bar parties found guilty of violating funding restrictions from the 2004 general election.

According to the PricewaterhouseCoopers audit, Arung Gauk Jarre, an associate of former state minister of the empowerment of state enterprises Tanri Abeng, transferred Rp 15 billion to Golkar on June 2, 1999.

Meanwhile, the Indonesian Workers Cooperative Alliance (Inkopkar) also denied allegations chairman Agus Sudono was involved in the banking scandal, saying the alliance received a donation of Rp 1.5 billion from Manimaren for research and development.

Manimaren was acting in his capacity as president of garment company PT Ungaran Garment.

"The company provided the funds to Inkopkar based on an agreement between the two institutions to finance its research and to promote smaller companies," Inkopkar spokesman Andang Kusbandriyo said in a statement to The Jakarta Post on Thursday.

Andang said Manimaren, in his capacity as the president of the garment company, issued a statement asserting the funds were not linked to the Bank Bali scandal.

"Manimaren released an official statement to Inkopkar on Sept. 29, 1999 confirming this," he said.

According to the PricewaterhouseCoopers audit, Manimaren transferred Rp 1.5 billion to Sudono between June 3 and June 9, 1999. Sudono then transferred Rp 1 billion to his wife Siti Hamidah's bank account, while the remaining Rp 500 million was placed in a bank time deposit. (04/rms)