Mahfud clarifies allegation of Golkar's misuse of funds

JAKARTA (JP): Defense Minister Mahfud MD denied on Tuesday diverting the public's attention from two financial scandals involving President Abdurrahman Wahid through leaking accusations over the alleged misuse of State Logistics Agency (Bulog) fund by Golkar Party in the 1999 general election.

Mahfud said his revelation was aimed at "promoting honesty in politics".

He said his 'reliable source close to the Cabinet' had informed him that Golkar had taken a Rp 90 billion (US$9.5 million) fund belonging to Bulog to finance its electoral campaign in 1999.

The House of Representatives on Jan. 29 decided after four months of investigation to issue a memorandum of censure to the President for his role in the fraudulent withdrawal of Rp 35 billion belonging to Bulog employees foundation (Yanatera) and his acceptance of $2 million humanitarian assistance from the Sultan of Brunei.

"If the alleged misuse of Rp 35 billion Bulog funds resulted in a strong censure from the House, why has a much bigger case been ignored? It's quite reasonable for the House to set up a special committee to investigate the bigger issue (of Golkar's alleged misuse of Bulog funds)," Mahfud said after installing several top echelon officials in his ministry.

Mahfud said he welcomed the House's censure of the President as a political decision, but he regretted the "unlawful attempt to manipulate the conclusion of the House special committee".

The investigation into the two financial scandals concluded that the President "is believed to be involved", but the House verdict stipulated that the President "is guilty".

Mahfud also dismissed demands to dissolve Golkar by saying the New Order was not identical with the former ruling party.

"Some former Golkar executives are now joining other political parties," he said.

New Order, according to Mahfud, dealt with a political spirit rather than a political organization.

"Such a political spirit could be found almost anywhere, not only in Golkar," Mahfud said.

Meanwhile, Golkar deputy secretary general Syamsul Muarif pleaded his party's innocence in the alleged misuse of Bulog funds for its electoral campaign.

"All political parties have submitted their financial report of the use of their election funds to the Supreme Court. Golkar itself has been cleared from any malfeasance," Syamsul said.

Syamsul suggested that Mahfud file a complaint with the police over this issue, in case certain Golkar members received the fund on the party's behalf. (02/dja)