Haryanto cleared of graft charges

Haryanto cleared of graft charges

JAKARTA (JP): President Soeharto cleared Minister of Transportation Haryanto Dhanutirto yesterday of embezzlement charges and declared the case closed.

Ending three weeks of speculation, Minister/State Secretary Moerdiono announced in his office that an investigation into the allegations found that there were "administrative errors, mistakes and improprieties".

But, Moerdiono told journalists, "there is no evidence that Minister of Transportation Haryanto Dhanutirto has misused funds belonging to state enterprises."

Haryanto has reimbursed the money from state enterprises that he used to pay for his family trips, he added.

The investigation was conducted by Vice President Try Sutrisno at the behest of the President and in response to reports by the Inspector General for Development Kentot Harseno alleging embezzlement, nepotism, favoritism and mismanagement in Haryanto's running of the ministry.

Memos of Kentot's confidential reports, which were based on interviews with disgruntled upper-echelon ministry officials, were leaked and picked up by the media.

Haryanto's cabinet portfolio gives him control over a number of state enterprises, including flag carriers Garuda Indonesia and Merpati Nusantara, the railway company PJKA and the companies which manage the countries' ports and airports.

The President, based on Try's findings, concluded that the inspector general's reports contained "some truths, some truths that were not supported by strong evidence, and also allegations based on wrong conclusions," said Moerdiono.

Moerdiono said one of Haryanto's "administrative weaknesses" was in the way the minister awarded contracts, which, he said, was geared to go to certain bidders.

There were also cases where contracts were awarded to companies that were not competent or cases in which contractors were allowed to hike their prices, he said.

Moerdiono said the President had asked Haryanto once again "to be introspective" and to improve his handling of the ministry's administrative and financial procedures as well as the state companies under his supervision.

Haryanto was faulted for appropriating more than Rp 9 billion (US$3.9 million) from state companies under his supervision to finance various ministry activities.

This, Moerdiono said, is in violation of a 1983 regulation, which states that under no circumstances should a state enterprise be made to pay for activities of the ministry which supervises it.

Responding to questions of a political motive behind the disclosure of the reports, Moerdiono said: "At first I did not see any political element."

Moerdiono said a separate investigation into how the papers were leaked determined that the source of the leak was not from the State Secretariat, the staff of the Presidential residence or the Secretariat of the Vice Presidential office.

"The investigation is still going on because a number of people who are in possession of documents they're not supposed to have are currently out of Jakarta," he said.

Moerdiono said that there was nothing improper about Kentot's conduct or the reports he wrote for the President, given that part of the inspector general's job description is to act as the "eyes and ears" of the President.

"But if later it turns out that he (Kentot) was the one who leaked the documents, he will be reprimanded," he said.

A number of media publications which claim to have had access to Kentot's confidential memos, say the list of allegations include the removal of Anwar Supriyadi as PJKA president due to a personal disliking. Anwar, a highly-respected official, had been questioning the use of Perumka funds for the construction of Haryanto's personal residence in Bandung.

Also on the list was the alleged use of US$244,000 in funds belonging to Garuda by Haryanto's wife during a trip to Europe, and the use of Rp 2.8 billion ($1.2 million) to pay for a racing car and a course in race-car driving for his son, Kikik, in the United States.

The press reports claimed that the minister rarely used Garuda when traveling overseas, though the airline was expected to pick up the tab for his trips. (emb)

Editorial -- Page 4