Graft rumors swirl after reshuffle

Graft rumors swirl after reshuffle

JAKARTA (JP): Legislators said after a closed-door
consultative meeting that President Abdurrahman Wahid told them
his decision to replace two economics ministers was due to their
alleged involvement in corruption, collusion and nepotism.

Legislator Meliono Suwondo of the Indonesian Democratic Party
of Struggle (PDI Perjuangan) said Abdurrahman revealed that the
Cabinet reshuffle was due to corruption.

Meanwhile, a chairman of a Muslim party faction at the House
of Representatives, speaking on condition of anonymity, also said
that suspicions of impropriety was the reason given by the
President for axing Laksamana Sukardi and Yusuf Kalla as state
minister of investment and state enterprises development and
minister of trade and industry.

"It's not because they could not work together, but the
President said that it was because of graft," the senior
legislator said.

Golkar Party legislator Ekky Syachrudin further confirmed that
the President had said corruption was the reason for the
replacement, and not his earlier public statement that a lack of
teamwork was the reason.

"The two ministers should be asked for confirmation since it
could defame them," he said.

The legislators said Laksamana was suspect due to his decision
of replacing several directors in state enterprises overseen by
his ministry, while concern over Yusuf was related to the
minister's brothers who joined tenders in the ministry.

House Speaker Akbar Tandjung was more reserved about the
accounts of the meeting between the President and leaders of the
House.

Akbar acknowledged that the four-hour meeting, usually open to
the media, was closed because the President wanted to reveal the
reasons behind the replacement of the two ministers.

However, he would not reveal the allegations against the two
ministers, saying only that he and the Golkar Party were "not
satisfied" with the explanation.

"We still cannot fully accept the reasons before we get
clarification from the concerned (former) ministers," Akbar, who
is also the Golkar Party chairman, said, adding that the party
would consider withdrawing its representatives in the Cabinet if
the accusations were proved untrue.

Meliono also said PDI Perjuangan was "not satisfied with the
explanation".

"Actually, we wanted to ask more questions on these
accusations, but the meeting was already ending," he said.

Apart from discussing the Cabinet reshuffle, which took up the
majority of time in the consultative meeting, the President also
reiterated his desire to revoke the People's Consultative
Assembly Decree No. 25/1966, which bans communism.

"Abdurrahman agreed that the Indonesian Communist Party (PKI)
could be banned, but he disagreed with a ban on communism and
Marxism," Meliono said.

Denial

The President confirmed weeks of speculation when he revamped
half his economics team by appointing on Wednesday Lt. Gen. (ret)
Luhut Panjaitan as the minister of industry and trade, and Rozy
Munir as state minister for investment and state enterprise
development.

Initially, Abdurrahman said the reason was the axed ministers'
inability to work together with Coordinating Minister for the
Economy, Finance and Industry Kwik Kian Gie and Minister of
Finance Bambang Sudibyo.

Abdurrahman said there was disunity and that the two axed
ministers failed to implement economic reforms mandated by the
International Monetary Fund (IMF) resulting in a freeze of the
US$400 million installment of its $5 billion rescue package for
Indonesia.

While Laksamana could not be contacted for a response to the
allegations, Yusuf Kalla went on the offensive later on Thursday
by meeting with Golkar Party colleagues to refute the various
allegations of graft, among which was the charge concerning the
state-owned electrical company PT PLN tender for the Paiton
project in East Java.

Yusuf maintained that despite the fact the tender was done
fairly, certain parties had maliciously slandered him.

"There was a certain party who whispered to Abdurrahman," he
said without elaborating.

"This case was examined by (Attorney General) Marzuki Darusman
and the Inspectorate General of the Ministry of Industry and
Trade. Everyone said it was clean without any intervention ...
And it should be given to (the winners of the tender) the Bukaka-
Megaeltra and Wijaya Karya consortium," Yusuf said.

The reverberations concerning accusations of graft were also
felt outside the House building.

A Cabinet minister, who asked not to be named when contacted
by The Jakarta Post, said among the reasons for the dismissals
was the President's exasperation at the ministers' half-hearted
policies due to their self-interest.

When asked to be more specific, the minister said Laksamana
had gathered an investors forum with direct access to him but
without the knowledge of the President.

"Another example was during the PT Indosat shareholders
meeting which invited the director of Indosat but elected a
commissioner as president.

"That was not consulted with Abdurrahman or other ministers."

Turning his attention to Yusuf Kalla, the minister without
elaboration merely said: "He used to be against regulating the
sugar trade, but all of a sudden he is strongly campaigning for
it." (byg/jun/dja)