Palace denies report on trip funds misuse

JAKARTA (JP): The presidential palace denied on Wednesday that there had been financial impropriety involved when it sent US$300,000 to President Abdurrahman Wahid during his recent trip to Saudi Arabia.

Secretary to the President, Mujib Manan, told a press briefing that the money was taken from the presidential secretariat's coffers to cover "additional expenses" of the presidential entourage during the haj pilgrimage.

Mujib confirmed that the money was delivered by the crew of a Garuda Indonesia flight to staff traveling with Abdurrahman in Saudi Arabia.

Earlier reports that the funds were delivered by Garuda sparked speculation that the money had been milked from the national airline.

Mujib flatly denied the speculation saying that "the money was taken from the presidential secretariat and not from Garuda."

"(The money) had to be delivered by the airline and could not be transferred (through a bank) because it would be too late as the haj was about to begin," Mujib said.

Wahyu Muryadi, the chief of palace protocol, who was present on Wednesday, said the government had assumed the Saudi government would cover all expenses during the presidential visit there, but because the visit took place during the peak period of the Haj pilgrimage season, Riyadh was only prepared to pay for 35 members of the delegation.

"The Saudi government only accorded state-guest status to 35 people including the President, the First Lady, the President's daughters, some cabinet members, his guards, and two legislators traveling with the President."

"About 60 other people had to pay for themselves, and therefore we sent the funds. But the funds did not belong to Garuda," Wahyu said, admitting that the trip to Saudi Arabia was "not carefully planned".

The case became public after the leaking of copies of a letter from Mujib's deputy, Bambang Irawan, to an unnamed general manager of Garuda at Soekarno Hatta International Airport. In the letter, the airline was asked to deliver the money to staff traveling with the President.

Mujib, who was just named secretary to the President in October, made another revelation on Wednesday when he admitted that he actually didn't know that his office had sent US$300,000 in cash to the President while he was abroad.

"I only heard about the case from the media. I was still in Surabaya when I was asked about it by the media. I immediately called Pak Bambang and was then told about all this," Mujib said referring to his deputy.

The revelation is the latest blow to Abdurrahman, who has already come under strong criticism for making too many overseas trips and leaving behind a myriad of domestic problems.

The case also provides legislators with more ammunition with which to attack Abdurrahman, who has also been under pressure to resign after the House of Representatives censured him on Feb. 1 over his alleged involvement in two financial scandals. (byg)