Budget surplus still at Bank DKI: Vice governor

Budget surplus still at Bank DKI: Vice governor

JAKARTA (JP): Vice governor Fauzie Alvi Yasin confirmed on
Thursday city-owned Bank DKI had lent out the Rp 822 billion
(US$109.6 million) surplus from the 1998/1999 city budget, but
stressed the money could at any time be withdrawn.

"The fund is still at the bank. The city administration could
withdraw the money anytime," he told reporters.

Head of the City Council's Commission C on financial affairs,
Amarullah Asbah, questioned on Wednesday the use of the budget
surplus by the bank.

Amarullah said the use of the budget surplus was unlawful
because it was made without the council's approval.

Law No. 9/1995 on Regional Administration requires any use of
the city budget to receive the approval of the City Council.

Fauzie said he would soon meet city councilors to explain
about the status of the budget surplus.

"We have planned to discuss about the use of the budget
surplus with the city council by the end of the month," he said.

Incumbent city councilors will complete their tenure on Aug.
25, the inauguration day for new councilors elected in the June 7
general elections.

In a meeting on Aug. 1, Commission C councilors were surprised
to hear from the bank's executives that the budget surplus had
been used for the bank's operation. They regretted the bank's
failure to comply with the regulation.

The commission had earlier decided that Rp 400 billion of the
budget surplus would be allocated for the city's savings, with
the remaining Rp 422 billion earmarked for the 1999/2000 city
budget.

The 1998/1999 city budget for income generated was Rp 2.48
trillion, with expenditures reaching Rp 1.65 trillion.

Bank DKI has been dogged recently by alleged corruption
involving its executives. The bank's president Maman Soelasman
and director of general affairs Djunaedy Albaghdadi have been
named as suspects by the Jakarta Prosecutor's Office for their
involvement in the Rp 2 billion corruption. (jun)