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)