Councilor queries surplus budget use

Councilor queries surplus budget use

JAKARTA (JP): A senior councilor questioned on Wednesday the
use of the Rp 822 billion (US$114.2 million) surplus from the
1998/1999 city budget by city-owned Bank DKI.

Head of the City Council's commission C on financial affairs,
Amarullah Asbah, said the use of the budget surplus was unlawful
because it was made without the council's approval.

"We will ask the bank's supervisory board for an explanation,"
Amarullah said. The board is chaired by Governor Sutiyoso.

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

Amarullah said commission members asked the bank's executives
about the status of the surplus in an Aug. 1 meeting.

He said they replied that the money was loaned to "other
parties".

He regretted the bank's failure to comply with the regulation.

"As a limited company, Bank DKI should not use the budget
surplus but be more creative in obtaining funds from other
sources," he said.

Bank DKI formerly operated as the cashier for the city
administration before it was made into a limited company.

Amarullah said the commission 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 Jakarta Prosecutor's Office has cited the bank's president
Maman Soelasman and director of general affairs Djunaedy
Albaghdady for alleged involvement in a Rp 2 billion corruption
case.

Maman and Djunaedy allegedly withdrew up to Rp 1 billion each
from the bank for personal use.

Sutiyoso fired the bank's marketing and credit director Siti
Aisyah in May after judging her incapable of performing her
duties. (jun)