Kesowo may face 6 years over Banpres

Kurniawan Hari, The Jakarta Post, Jakarta

State/Cabinet Secretary Bambang Kesowo violated Law No.20/1997 on Non Taxable State Income for failing to hand over in full the Presidential Aid Fund (Banpres) to the Ministry of Finance as required by the law, legislators said on Monday.

"The law stipulates that all institutions have to hand over non taxable state income to the finance ministry. Whoever violates the law, and this includes Bambang Kesowo, has to face the legal consequences," House of Representatives (DPR) Commission I member Arif Mudatsir Mandan said.

Arif, a legislator from the United Development Faction (FPP), said as of April 30, 2002, that Banpres funds stood at Rp 509.26 billion and US$10.96 million, but so far Kesowo had only handed over Rp 44.5 billion to the ministry.

Any violation of the law is punishable by up to six years in jail.

Enacted on May 23, 1997, the law gave a grace period of five years for all state institutions to comply with the law.

"It means the deadline was last May 23," said legislator Djoko Susilo of the Reform Faction.

Both Arif and Djoko are members of a 12-strong team assigned to verify documents on Banpres provided on May 27 by Kesowo.

Kesowo is expected to appear before the team on Tuesday to clarify reports concerning Banpres.

Legislators seemed to pay no attention to the balance sheet and management report of Banpres since the funds were set up by former president Soeharto in 1984 until President Megawati Soekarnoputri donated Rp 30 billion of the funds to the military and the police in February.

The document, however, has led legislators to trace several irregularities in the use and management of the discretionary cash for the president.

The funds were collected during the government of Soeharto's presidency from various sources including the State Logistics Agency (Bulog), clove trade regulations, cigarette taxes and money left over from the construction of the Indonesian Embassy in Singapore.

The amount of money has decreased from year to year. Former president B.J. Habibie inherited Rp 550.4 billion and $12 million from former strongman Soeharto in 1998, while former president Abdurrahman Wahid received Rp 477.1 billion and $13.6 million from Habibie in 1999.

When Megawati took over the national leadership in 2001, she inherited only Rp 401 billion and $10.6 million from her predecessor Abdurrahman, excluding about Rp 100 billion kept by the vice presidential secretariat.