Wed, 29 Apr 1998

Police takes over Games' sticker probe

JAKARTA (JP): State Minister of Youth Affairs and Sports Agung Laksono has told the police they should not hesitate to question government officials or top businesspeople in connection with an alleged scam in the sale of fund-raising stickers for the 19th Southeast Asian Games.

Agung said Monday the government believed the police would conduct a thorough investigation of the case, even if it involved renowned state officials or businessmen.

"If they are proven to have violated the law, then the police can bring them to court," Agung said.

Earlier on the day, Agung wrote National Police Chief Gen. Dibyo Widodo, asking the latter's subordinates to investigate the matter, which has reportedly cost the SEA Games underwriting consortium Rp 1.185 billion in revenue from the sale of stickers for several public services.

Agung disclosed last week that he would question at least three executives of the consortium's subcontractor, PT Angkasa Rona Graha (ARG), on their alleged role in the scandal. However, the internal investigation was canceled.

Agung did not specify the names of the executives in his letter to Dibyo.

"I insist on keeping the suspects' names secret because I believe the case will develop and there will be more suspects," Agung said.

The three were singled out for questioning from the findings of public accountants KPMG Hanadi Sudjendro and Co., which conducted a financial audit on the consortium's report.

The consortium, chaired by President Soeharto's son Bambang Trihatmodjo, obtained a decree from the social services minister in 1996 to raise public funds through the sale of stickers. It subcontracted the assignment to PT ARG which agreed to collect Rp 50 billion.

Ultimately, PT ARG managed to rake in only Rp 18.75 billion before the ministerial decree was revoked on July 1, 1997, following widespread public complaints.

The consortium raised an additional Rp 24.74 billion from the sticker sales in cooperation with several state-owned companies and provincial revenue agencies.

Agung said that a thorough investigation of the alleged swindle was a must because it involved the people's money.

"We have a moral obligation to uncover the irregularities to their end," Agung said.

He called on the public not to stop donating their money for a sporting event just because of the SEA Games sticker row.

National Police spokesman Brig. Gen. Da'i Bachtiar confirmed the police had taken over the case from the ministry, but said he had yet to verify who would be in charge of the investigation.

"I will check first whether the City Police or the National Police will handle this case," Da'i said. "Basically, we will do our best," he said, adding that details would be unveiled in a media conference today. (emf/edt)