Indonesian Political, Business & Finance News

Councillor admits paying Rp 20m to colleague

Councillor admits paying Rp 20m to colleague

Ahmad Junaidi, The Jakarta Post, Jakarta

After several days hiding from the press, the City Council's
Indonesian Democratic Party of Struggle (PDI Perjuangan) faction
chairman, Agung Imam Sumanto, has admitted that he gave a fellow
councillor Rp 20 million in what has been labeled a bribery
scandal.

Agung denied that the money (US$2,150) was from city-joint
venture company PT Jakarta International Trade Fair (JITF) as
claimed by fellow PDI Perjuangan councillor Ugiek Soegihardjo.

"The money was from my own pocket. It's from the party's
sympathizers," he told reporters at the council on Monday.

Agung claimed he gave the money to Ugiek last December as a
Christmas bonus.

He said the money was also meant to support Ugiek, a member of
the council's special committee probing PT JITF, for his
investigation into alleged irregularities at the company.

Agung denied council secretary Moerdiman's statement to Ugiek
that the money came from PT JITF.

"Moerdiman was joking when he told Ugiek that," he said.

But Ugiek rejected Agung's statement.

"Moerdiman was serious when telling me about the money's
source. He was not joking!"

Ugiek said the money was handed over after the special
committee was established in early January.

"He (Agung) never said that the money was for the Christmas
bonus or to investigate the company," he said.

Ugiek declined to give further details about the money.

He was reported to the City Police by PT JITF president Edward
Soerjadjaja on Friday for defamation.

"I will only tell the police or court the truth (about the
money)," said Ugiek, who is a member of the council commission B
for development affairs.

Councillor Haim Hamadin of the National Mandate Party said
that receiving money for the council's operational costs violated
council regulations.

"It is an unacceptable practice. We are not allowed to receive
money because the council has always provided the fund for all
our activities," he said.

Ugiek revealed last Wednesday that he received Rp 20 million
from PT JITF, saying that the money was possibly given in
relation to the council's investigation of the firm.

Several councillors -- particularly from PDI Perjuangan who
are also members of the special committee -- allegedly also
received Rp 20 million each from the company. They have denied
the allegations.

The special committee consists of 26 councillors from the
council's 11 factions. Eight members of the committee were from
PDI Perjuangan, the largest faction in the council with 30 seats.

The council's special committee earlier recommended that legal
action should be taken over alleged corruption surrounding the
sale of 10 hectares of land owned by the company.

Each member of the special committee officially receives Rp
2.5 million from the council after they finish an investigation
and report their recommendations.

The city budget allocated Rp 3.4 billion for the special
committees. This year's budget allocated Rp 4 billion.

Fifteen special committees have been established in the last
two years to investigate various cases. Some, at least two
committees, found irregularities but most have ended in peace.

Activists believe the committees are often used as an "evil
conspiracy" between certain councillors, city officials and
businessmen who encourage corruption and collusion practices.

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