Tue, 21 Dec 2004

Councillors pawning job letters for cash

Multa Fidrus, The Jakarta Post, Tangerang

Several Tangerang regency councillors have handed their letters of appointment over to pawnshops or banks as collateral for loans.

They claim the benefits and incentives provided by the regental administration are insufficient.

"It's true that my letter of appointment is now held by Bank Jabar," a councillor who requested anonymity told The Jakarta Post recently.

The councillor has agreed to remit a percentage of his monthly salary to the bank for the safekeeping of his letter.

A council employee said that he knew of several councillors who had entrusted their letters of appointment to a bank, but refused to name the councillors.

"I don't know exactly how many of them have done this," the employee said.

The councillors said the administration had cut down on facilities and incentives to comply with Government Regulation (PP) No. 24/2004 on protocol and the financial status of provincial council leaders and members.

Article 10 of the regulation stipulates that each councillor receives perks, including a living allowance, housing allowance, health insurance and honorariums.

The basic salary of a councillor is about Rp 4. 8 million (US$533) per month, totaling about Rp 7 million per month including allowances and honorariums.

Councillors in previous years, however, reportedly received a total of Rp 15 million per month.

Councillor Anugrah of the Prosperous Justice Party (PKS) faction refused to comment on the issue.

But a former councillor, who also requested anonymity, acknowledged that such a practice certainly occurred, as he had used his letter of appointment to obtain a bank loan.

"I borrowed Rp 25 million from the bank and the council secretariat's financial division deducted money from my salary to repay the loan," he said.

The Tangerang chapter of the National Mandate Party's (PAN) executive board head, Fachruddin, said he had heard such a complaint.

"I told the councillors to abide by the regulations. They have made a big mistake if they became councillors just to make a lot of money," he said.