Wed, 19 Jul 2000

Authorities to hold fit-and-proper test for directors at city's firms

JAKARTA (JP): The city administration will hold a fit-and- proper test to streamline the current members of the boards of directors at all city-owned and jointly-owned companies, an official said on Tuesday.

Head of the City Economic Development Office, Dameria Saragih, said that the test, the schedule of which has yet to be decided, is aimed at selecting 50 qualified personnel from the current 80 members of the various boards.

"We will squeeze the number down to about 50 members because there are several companies being merged," Dameria told The Jakarta Post.

According to Dameria, the test will be carried out by an independent consultant to achieve an objective result.

"I have nominated two candidates and it's up to Governor Sutiyoso to pick which consultant will do the test," she explained.

The performance of six city-owned and 52 jointly-owned companies have become the target of harsh criticism from city councillors for their failure to contribute significant amounts of money to the city budget.

Dameria, however, refused to give further details about the test and the names of the two nominated consultants.

"I don't remember the two candidates' names but both are local firms. We don't have enough money to hire foreign ones. The test will be done once the budget is available," she said.

"The governor hasn't even picked the consultant yet because I have just submitted the report. But at least it will be done by the end of November," she said.

Dameria said the appointment of an independent consultant was to avoid any irregularities and possible public accusations of collaboration.

"Several groups of residents are doubtful about the City Personnel Office performing the test. They think the office won't arrange the test seriously," she said.

"So, we concluded that it would be better to hire credible and independent consultants to organize the test," added Dameria.

She also said those passing the test had to relinquish their positions as public servants at the city administration.

"They have to choose their status either as employees of the companies or of the city administration. It's important to avoid any conflict of interests here," said Dameria.

"We will return those refusing to relinquish their employment with the city administration to the bureaucracy," she added. (nvn)