Official says loan repaid, claims slander

Damar Harsanto, The Jakarta Post, Jakarta

Jakarta Sanitation Agency head Selamat Limbong admitted that he had borrowed money from city councillor Posman Siahaan in 2002.

"Yes, I borrowed some money from him when I was still working as head of the city-owned Lokasari entertainment area in West Jakarta in April 2002. I borrowed Rp 250 million (US$29,762) to support my friend's business," he said on Thursday.

Limbong said he had paid the money back four months later.

"After returning the money I was able to recover the building certificates for two houses, which I had used as collateral."

Limbong was responding to statements made by Petrus Bala Pattyona, Posman's lawyer, who had said on Wednesday that the agency head and his wife Herlintje Sagala had an unsettled debt amounting to Rp 1 billion to Posman. The money had been used "to secure the position of agency head".

According to Petrus, Limbong had recovered the building certificates but had yet to pay his debt.

If proven guilty, Limbong and his wife could face a maximum sentence of four years imprisonment according to Criminal Code Articles 372 and 378 on fraud and embezzlement.

Due to the statements, Limbong planned to report Posman to the police for alleged defamation.

"My name and my family's names have been defamed by the report, which is untrue. I will file a report with the police soon," he said, adding that his lawyer Purbadi would handle the matter.

Posman refused to comment on the case, saying "Please, ask my lawyer about that".

Limbong said he had reported the case to Governor Sutiyoso, Deputy Governor Fauzi Bowo and City Secretary Ritola Tasmaya.

However, he refused to divulge the responses of his superiors.

Ritola had said on Wednesday that there would be sanctions imposed on civil servants involved in criminal cases, but did not provide details of the intended sanctions.