Firm admits to spending Rp 3b to fund labor bill deliberation
JAKARTA (JP): State-owned workers' social insurance company PT Jamsostek admitted yesterday it had slashed Rp 3.1 billion (US$911,000) off its budget to fund the deliberation of the manpower bill.
The company's president, Abdillah Nusi, told a press conference at the Ministry of Manpower that the money came from the portion of its 1997/1998 budget allotted to the protection of workers and membership expenditure.
Abdillah was responding to speculations that the company had earmarked Rp 7.1 billion to grease the wheels of the House of Representatives so the controversial bill would be passed before the House term ended on Sept. 30.
Photocopies of documents circulating among the press since Monday indicate that some of the money was given to 44 legislators deliberating the bill.
Minister of Manpower Abdul Latief skipped the press briefing, leaving Abdillah and the ministry's director for research and development Yudo Swasono to brave a barrage of questions.
"They (Abdillah and Yudo) urged me to hold a press conference several days ago, but I asked them to delay it until today. It's exciting (to see the rumors appear in media), isn't it? It also serves as a free advertisement for Jamsostek," Latief told chasing journalists.
Abdillah said that in a letter dated July 27, Yudo, then the Ministry's acting secretary-general, had asked for Rp 7.1 billion. But the insurance company managed only Rp 3.1 billion.
"The company agreed to give the funds after learning it would not violate the law and with the consent of our panel of commissioners and shareholders," Abdillah said.
However, Yudo admitted later that the company's shareholders had approved the allocation of Rp 4 billion for the protection and membership expenditures, but not the reallocation of the funds to finance the deliberation of the bill.
Abdillah said the funds had been used to pay for daily expenses during the two months of deliberation on the bill which involved 60 legislators and 34 Ministry officials, plus secretariat staff from both the Ministry and the House.
He denied that money was given to the legislators.
"The funds were small compared to the protection and bright future the Manpower Law gives to 90 million of workers who previously had poor security," he said.
The bill received House approval on Sept. 11 and was enacted into law by the President on Oct. 3.
Yudo said the House legislators had wanted to finish the deliberation before their term expired.
He said he had asked for a lot of money because he lacked information about the planning of the bill deliberation. "My calculations excluded (the funds) the state budget and House budget provided for the law making," he said.
The Ministry allocated Rp 950 million this fiscal year for the establishment of the new Manpower Law.
Separately, several legislators who were on the House special committee deliberating the manpower bill denied taking money from the Ministry.
Marzuki Achmad, also chairman of the Federation of All Indonesian Workers, questioned the validity of the copies of documents.
"It (the bribery allegation) is untrue because I and other committee members fought it out to ensure workers' aspirations were incorporated into the bill," he said.
Chofifah Parawansa of the United Development Party said the Supreme Audit Agency had to verify whether the fund relocation was allowed by law.
The Indonesian Legal Aid and Human Rights Association and the Foundation of the Indonesian Legal Aid Institute (YLBHI) denounced yesterday Jamsostek's approval of the reallocation of the funds, calling it an embarrassing scandal.
It said the decision was ironic since the Law has been widely criticized for failing to accommodate workers' rights.
"The misuse of the funds is an embarrassing scandal. The funds should have only been disbursed to enhance workers' welfare, (with programs) such as health support and pensions, instead of being used to smooth the path of the controversial bill," YLBHI activist Teten Masduki said in a press release. (09/10/aan/amd)