Indonesian Political, Business & Finance News

Govt may reject council's request for Rp 5.4 billion

| Source: JP

Govt may reject council's request for Rp 5.4 billion

Rusman, Samarinda

The East Kalimantan administration may reject a request to
disburse Rp 5.4 billion (US$600,000) in allowances for the
province's 45 legislative council members, ahead of the end of
their five-year terms in September.

Local administration spokesman Jauhar Effendi said on Tuesday
the disbursement was delayed because the request for the funds
was a violation of Government Decision No. 110/2000 on the
financial status of legislative councils.

"Because of this, the postponement is perfectly normal as the
administration must find a legal basis to account for its
finances," he argued.

Muhammad Rusli, the head of the financial bureau's
verification division at the administration, confirmed the
indefinite delay was due to the regulation.

The council issued a letter dated May 18, 2004 asking the
local government for Rp 5.4 billion in additional funds. More
than Rp 4.5 billion of the money would be allocated for its 45
members' operational activities and Rp 900 million for a medical
allowance.

The councillors would receive Rp 120 million each before they
end their terms in September. The letter was signed by council
speaker Sukardi Jarwo Putro.

Rusli said his office was yet to decide whether to reject the
council's request for the additional funds.

Based on Government Regulation No. 110/2000, the operational
funds of a legislative council must not exceed Rp 2.5 billion if
the original revenue of its province is more than Rp 500 billion.
East Kalimantan's 2003 revenue reached Rp 604.4 billion.

Deputy council speaker Kasyful Anwar As'ad asked the
provincial administration to reject the request and insisted he
would refuse to accept the money.

He admitted the request for more funds violated the existing
regulations, while most of the councillors approved it.

Kasyful said he had several times demanded the letter
requesting the money be revoked, although he once chaired a
plenary session of the council to endorse the request.

The request was apparently part of efforts by the council to
enrich its members before they end their five-year terms, after
it failed to secure retirement funds for them.

The move came despite reports of collective graft scams in
many provincial, municipal and regental councils across the
country.

Last month, almost all members of the West Sumatra legislature
were convicted of graft by the Padang District Court.

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