Govt reviews deals with Soeharto's kin
Govt reviews deals with Soeharto's kin
JAKARTA (JP): The government said on Tuesday that it is reviewing and severing many business contracts signed by its agencies and enterprises with children of former president Soeharto and his crony Muhammad (Bob) Hasan.
However the government has resisted public pressure to take over huge funds managed by five charity foundations chaired by Soeharto, stressing that the money belonged to the foundations and not to the former president.
The Coordinating Minister for Development Supervision and State Administrative Reform, Hartarto, announced the latest measures as part of a government campaign to eliminate corruption, collusion and nepotism in the bureaucracy.
In some instances, the measures would lead to big savings for the government, Hartarto said.
Many of these deals were obtained largely as a result of political connections, and not through competitive bidding.
All contracts held by Soeharto's eldest daughter Siti Hardijanti Rukmana pertaining to toll road construction and operations across the country would be reviewed.
Soeharto's sons Bambang Trihatmodjo and Hutomo (Tommy) Mandala Putra have been cut out of many money spinning deals at the state oil company Pertamina, including the shipment of liquefied natural gas and their intermediary role in oil trading.
Bob Hasan also had his hands in many Pertamina deals.
Hartarto said the move would save Pertamina $82.76 million a year.
The government has also rescinded and reviewed various contracts for procurement and marketing at Garuda Indonesia airlines and at Krakatau Steel.
Perum Kereta Api, the state railway company, is reviewing four contracts that were deemed disadvantageous to the government.
They are the coal transportation deal in South Sumatra with PT Intra Sarana Manunggal (owned by Bambang and Mamiek Soeharto), the Wonokromo-Tanjung Perak toll road in Central Java with PT Tri Daya Esta (Bambang), and the construction of the Triple Decker subway system in Jakarta and the construction of an integrated railway/bus terminal in Manggarai (both Siti Hardiyanti Rukmana).
Reforestation fund
The government is also tightening the use of the reforestation fund administered by the Ministry of Forestry and Plantations.
Funds loaned to finance last year's Southeast Asian Games and small enterprise credit schemes will be reclaimed.
Stocks in PT Dua Satu Tiga Puluh -- a company set up to raise funds for the development of Indonesia's national jet project -- will be sold off if the government can find a buyer. The stocks were purchased using money taken from the reforestation fund.
The government is canceling a loan to Bob Hasan's PT Kiani Kertas paper manufacturing company which was originally going to come out of the reforestation fund.
Hartarto said the government was reviewing all forest concessions and would be very selective in issuing new concessions and extending old ones.
The Ministry of Forestry and Plantations has terminated its contract with Tommy's PT Gatari transport company and demanded that the company return all the ministry's helicopters in good condition. The ministry will now employ Air Force personnel to fly them.
The government is also reviewing the ownership of land in Greater Jakarta to make sure that no individual or developer has excessive control over certain areas.
Hartarto said the government campaign would continue and progress reports would be announced every three months.
Attorney General Andi Muhammad Ghalib, who accompanied Hartarto to the briefing in the Bina Graha presidential office, said the announcement was part of a "crisis management" package.
"People are anxious to see results. Trust us, the government will be consistent in eliminating corruption," Ghalib said.
On Soeharto's foundations, Hartarto said the government was still conducting both legal and financial audits.
A preliminary study found indications of misuse of the funds by Bob Hasan, who is an executive at one of the foundations, Ghalib said.
The five foundations -- Supersemar, Amal Bhakti Muslim Pancasila, Dharmais, Dakab and Dana Sejahtera Mandiri -- control approximately Rp 3.7 trillion in funds. (prb/emb)