Firm admits to spending Rp 3b to fund labor bill deliberation

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)