Donation from Brunei questioned

Donation from Brunei questioned

JAKARTA (JP): Legislators and observers on Monday censured
President Abdurrahman Wahid's acceptance of millions of dollars
in personal donations saying that while it is currently not
unlawful, it is ethically questionable.

The censure came following Abdurrahman's insistence that he
accepted a US$2 million humanitarian assistance for Aceh from
Brunei's Sultan Hassanal Bolkiah as a personal donation.

The Indonesian Corruption Watch (ICW) said Abdurrahman's
acceptance of the donation "is an unethical act as it relates to
a financial gift to a public official which opens the way for
potential corruption".

Abdurrahman's acceptance of such a donation, the corruption
watchdog said, "shows the lack of understanding President
Abdurrahman Wahid and the Indonesian government has of the
principles of public finance and public accountability".

In a statement signed by coordinator, Teten Masduki, ICW said
the President must clarify if he accepted the donation as a
president or as an individual.

If the donations were accepted by Abdurrahman in his capacity
as President then the funds should be included in the state
budget.

But if it is under a personal capacity, then Abdurrahman would
likely have to pay taxes on it.

ICW said if Abdurrahman maintains that he accepted the
donation not as President then he should "include it in his
income tax report because a grant according to tax laws is an
added economic adequacy and taxable".

The question over the financial donation from the Brunei
Sultan also raised eyebrows because Abdurrahman stated that as a
personal donation he thus kept it outside the state budget and
left its management to a relatively unknown businessfriend named
Masnun.

Speculation

Separately House of Representatives Speaker Akbar Tandjung
said the House did not object to the foreign donation channeled
personally through the President, nevertheless the President must
be transparent and accountable for it.

"It doesn't matter if the President received the aid in his
personal capacity but he should reveal it to the House,
particularly the use of the donations to avoid unnecessary
speculation," he said.

He said Abdurrahman must publicly explain the amount of funds
and whether the donation has reached the Acehnese.

"We will question the President in our consultative meeting
this month," said Akbar who is also Golkar Party chairman.

House Deputy Speaker Muhaimin Iskandar also remarked that the
President has a moral obligation to explain it.

"There's no legal problem for the President to accept foreign
aid for a humanitarian mission in Aceh but morally its acceptance
and use should be accounted for," he said.

Muhaimin, also secretary general of the National Awakening
Party (PKB), contended that the use of such donations for
humanitarian missions should actually be supported given the
country's limited economic resources.

He said the House is drafting a bill on the presidency to
regulate matters such as foreign donations handed over through
the President.

Meanwhile, Alvin Lie a member of the Reform Faction,
criticized the President, saying that he breached his
presidential oath by failing to publicly account for the
donation.

"The President should step down for breaching his own oath,"
he said.

Ekky Syahrudin, a Golkar Party legislator, warned the
President against corruption among his close friends and aides.

"According to my sources a bigger part of the Sultan's
donation is in the hands of the President's close friends and
certain state officials and they are also involved in Bulogate,"
he said referring to scandal at the National Logistics Agency.

Ekky said foreign donations channeled through the President
should be enclosed in the state budget.

The National Democrat Party (PND) called on the President to
clarify both the donation issue and the Bulog scandal.

"The Bulog scandal and alleged misuse of the Sultan's donation
have damaged the credibility of the President's government," PND
Chairman Edwin Henawan Soekowati said during the closing ceremony
of the party's congress here on Monday. (jun/rms)