No misuse of workers' funds, BPKP says

JAKARTA (JP): The Development Finance Comptroller (BPKP) has cleared Minister of Manpower Abdul Latief of any impropriety in the use of state-owned social security company PT Jamsostek's funds.

The internal audit agency's chairman, Soedarjono, after meeting with President Soeharto yesterday, said Latief had not misused Jamsostek's funds since the money was from the funds' profits.

Soedarjono claimed Soeharto approved the comptroller's report on the matter.

"We've reported it to the President. Bapak President accepted it as it was in line with his instruction to use the funds. The President said 'okay', so there is no more problem," Soedarjono said.

Latief came under fire last year after it was revealed that Jamsostek funds were used to finance deliberations to pass the controversial manpower bill that his office sponsored.

Latief acknowledged in December that he used Rp 2.8 billion of Jamsostek's funds to finance the deliberations which he later claimed was done under the instruction of the President.

Latief has strongly denied suggestions that the money was to bribe legislators, arguing that it was used to finance administrative and secretarial services.

According to Soedarjono, Rp 3.5 billion was used to finance the deliberations, but only Rp 2.43 billion was from funds originating from Jamsostek-related sources, more specifically, workers' welfare improvement funds.

Another Rp 1 billion was from a levy which has to be paid by companies hiring expatriates.

Based on the agency's audit, a large portion of the funds, Rp 1.25 billion, was spent for accommodations at the Horizon Hotel in Ancol, North Jakarta, where the deliberations were held.

The second highest expenditure was for allowances to members of the House of Representative's special committee. The amount was put at Rp 851 million for 52 meetings.

Other expenditures included allowances for the secretariat and the core team from the Ministry of Manpower which amounted to Rp 259 million and Rp 337.9 million respectively.

A statement from Jamsostek in November said a team of 60 House special committee members and 34 officials from the Ministry of Manpower were included on the team deliberating the bill.

When asked whether it was appropriate to fork out Rp 3.5 billion to pass just one bill, Soedarjono said, based on the audit, the funds were all accounted for.

"If you take into account how and where the expenditures were spent, such as the Horizon Hotel, for so many days, I think its quite acceptable," he replied.

Latief, who accompanied Soedarjono during the meeting with the President, said the bill was very complex and the government was pressed for time. Thus the funds were needed to help expedite the process.

Separately, palace officials said yesterday that it was somewhat odd that the chairman of the internal audit agency be accompanied by a minister when meeting with Soeharto, especially since the agency's report was investigating that particular minister. (prb)