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