Police takes over Games' sticker probe

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before the ministerial decree was revoked on July 1, 1997,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)