No misuse of workers' funds, BPKP says

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)