Indonesian Political, Business & Finance News

House to query military on dubious Aceh operation funds

| Source: JP

House to query military on dubious Aceh operation funds

Kurniawan Hari, Jakarta

The legislature is questioning the disbursement of Rp 738 billion
(US$86.8 million) for the military operation in Aceh since
December amid allegations of widespread corruption in the
province.

Some of the cases allegedly involve Aceh Governor Abdullah
Puteh, with the strong likelihood Jakarta will appoint a new
governor.

The government decided on Thursday the war-torn province would
be in a state of civil emergency but military and police
operations will continue where necessary.

However, legislators who had approved both the first and
second six-month stages of "integrated operations", said there
were indications of suspected irregularities in the disbursement
of the funds. Next Wednesday or May 19 will mark the end of the
second stage of the operations.

Activists in and outside Aceh have for some time pointed to
graft as the major cause of the province's problems, noting the
government was more interested in pursuing the separatist Free
Aceh Movement (GAM) than dealing with corruptors.

The House of Representatives (DPR) has summoned a defense
ministry official in charge of spending, Mas Wijaya, who is
expected to show up at the House on Monday.

"The funds have been disbursed without the approval of the
House. We're questioning the disbursement and summoning him
(Wijaya) to provide clarification," legislator Djoko Susilo from
the Reform faction said on Friday.

Citing the Law no. 28/2003 on the state budget, Djoko said the
government and the House first had to discuss funds for
nationwide programs or activities, after which the government
sought the House's approval for disbursement.

Members of the Indonesian Democratic Party of Struggle (PDI-P)
and the National Awakening Party (PKB) factions also said all
matters related to the state budget should be discussed by the
government and the House.

In a Thursday hearing with the Ministry of Defense's Secretary
General Suprihadi, the ministry revealed it had began disbursing
Rp 738 billion for the second stage of the military operations in
Aceh from December through May.

Given the ministry and the Indonesian Military (TNI) had
"limited time" to continue their operations, they had asked the
funds be channeled directly from the Ministry of Finance, the
ministry said in a written reply to the House.

The ministry said the funds were disbursed in three phases.
The payment was Rp 83.1 billion, the second Rp 273.5 billion and
the third Rp 381.6 billion.

Many legislators were not impressed by the explanation.

"We urge the defense ministry to follow the existing
procedures. This is a violation of the budget law," Djoko said.

Chatibul Umam Wiranu of the PKB faction said the defense
ministry should consult budgetary matters with the House's
Commission I for defense and security affairs.

Commission members in charge of the state budget would then
discuss it with legislators from other commissions to confirm
whether the state had adequate funds.

"That is the normal procedure. It means a certain ministry is
not allowed to directly ask for money from the finance ministry,"
Chatibul added.

He said as long as the defense ministry was "still controlled
by the TNI", similar incidents would reoccur.

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