Fallout not over from cash incentives

Fallout not over from cash incentives

JAKARTA (JP): Reviews of Gubernatorial Decree No. 710/1981 and
City Bylaw No. 1/1981 on incentive funds is being sought in the
wake of the recent wrath over Rp 10 million cash given by
Governor Sutiyoso to each city councillor.

Golkar Party councillor Amarullah Asbah said on Tuesday the
two regulations were no longer compatible with growing demands
for transparency and the principles of Law. 22/1999 on regional
autonomy, which will take effect on Jan. 1, 2001.

"The old regulations are based on Law No. 5/1974 which does
not differentiate the budget for city administration from that of
city council. This makes it possible for city councillors to
receive such incentives," Amarullah said.

"However, the law on regional autonomy stipulates separate
budgets for the two institutions. Thus we will be financially
independent from the city administration and such incentives
could raise a negative perception."

The city bylaw and gubernatorial decree allow the allocation
of between 2.5 percent and 5 percent from city tax revenues for
incentives to be given to all city administration employees with
good performance and all of the administration's supporting
agencies.

However, neither regulations elaborate the supporting
agencies.

Another councillor, Posman Siahaan, echoed Amarullah's view,
"I fully agree with the opinion that those regulations should be
amended as soon as possible," he said, adding that they do not
comply with the spirit of regional autonomy.

The city councillors have come under media scrutiny for
receiving the money a few days after they accepted Governor
Sutiyoso's revised accountability speech on Aug. 22. (dja)