Sat, 22 Nov 1997

Latief ready to clarify bill financing row to House

JAKARTA (JP): Minister of Manpower Abdul Latief has agreed to explain to the House of Representatives his office's controversial use of funds from a state-owned insurance firm to finance legislators deliberating the manpower bill at an expensive hotel.

Latief has, over the past several days, refused to comment on the disbursement of billions of rupiah from PT Jamsostek for a group of 1992/1997 House members discussing the bill.

Deputy House Speaker Syarwan Hamid said yesterday Latief had welcomed a hearing with the House, although he had not arranged time for it.

"I have met him (Latief) recently and he said he was ready for a dialog with the House. He is open to answering the queries," Syarwan said.

Syarwan said Latief was also willing to offer an explanation should the Attorney General and the Development and Finance Control Agency wish to investigate the alleged mismanagement of the funds.

"The House hearing with the minister will likely take place after the Development and Finance Control Agency completes its auditing of the funds disbursement," said Syarwan.

He said he expected the hearing would end speculation that Latief had used the money to grease the House's wheels to pass the bill.

The bill was passed by the House on Sept. 11 and was signed by the President on Oct. 3, but will only be effective from Oct. 1 next year.

Latief had asked for Rp 7.1 billion (US$2.15 billion) from PT Jamsostek to finance the deliberation, but the firm could provide only Rp 3.1 it took from its current budget allotted for the protection of workers and membership expenditure.

Jamsostek president Abdullah Nusi said the funds were relatively small, compared to the greater protection of workers once the Manpower Law becomes effective.

Nusi said the money had been spent for, among other things, accommodation, food, secretariat and transportation expenses during the two months of deliberation at Hotel Horison, Ancol, North Jakarta.

The United Development Party (PPP) faction demanded House leaders Thursday to summon Latief to clarify the disbursement of the money.

Syarwan said House leaders had arranged a discussion about the plan to hear Latief's explanation during their weekly meeting next Tuesday.

Corruption

The Indonesian Legal Aid Foundation (YLBHI) demanded the Attorney General question Latief for an alleged abuse of public funds.

The foundation's chairman, Bambang Widjojanto, said Jamsostek president's confession Wednesday was more than enough for the Attorney to start an investigation.

"The disbursement of funds can be categorized as corruption and bribery if it is proven that it has been used to smooth the way to the bill," Bambang said.

He said Latief's ex-officio position as Jamsostek's president commissioner and a state official who oversees the company enabled him to commit financial abuse.

Bambang said that the House legislators involved in the deliberation should also be questioned for allegedly taking bribes.

A 1970 law allows the police to question House of Representatives legislators with the President's consent. The law applied last year to some Indonesian Democratic Party (PDI) legislators, including Megawati Soekarnoputri and Aberson Marle Sihaloho.

Bambang also questioned the validity of the Manpower Law following the row, and demanded the government and the House review the law.

"This scandal has disclosed many political and moral flaws in the bill deliberation," Bambang said.

Meanwhile, YLBHI's head of labor division Teten said that the alleged corruption and bribery case must be investigated entirely by the government.

"The government will lose public confidence if it fails to carry out a thorough investigation," Teten said.

"The government will also face great political risk due to a flurry of problems now battering the country, including the current economic crisis," he added. (10/amd)