Fri, 08 May 1998

Probe of Jamsostek's management urged

JAKARTA (JP): A senior member of the House of Representatives has urged the government to seriously investigate the alleged rampant corrupt practices at state-owned social security company PT Jamsostek.

Faisal Baasir of the United Development Party (PPP) said Wednesday that he was disappointed at the lack of action taken to investigate corruption at PT Jamsostek.

He said the scandal included the alleged appropriation of land on which the company was building its multimillion dollar Jamsostek Towers, the misappropriation of Rp 63.6 billion ($7 million) from the funding for the towers' construction, the misuse of Rp 7 billion in public funds to ease the passage of the Labor Law and the loss of Rp 915 million incurred from a bad deal.

PT Jamsostek's president Abdillah Nusi and his predecessor Sumakmur PK have been questioned by the Jakarta Prosecutor's Office in connection with the alleged land appropriation.

PT Jamsostek officials have denied allegations that 3,226 square meters of the 16,290 square meters of the project site was illegally acquired. They claim to have documents proving the company is the rightful owner of the land.

Faisal said that in its 1997/1998 second quarter report, the Supreme Audit Agency (BPK) found that PT Jamsostek had "wasted" Rp 63.6 billion in its Rp 340 billion two-tower project on Jl. Gatot Subroto, South Jakarta.

Although such an esteem body made the allegation public, there has been no sign that the authorities would look into it, he said as reported by Antara.

"I think information on the alleged corruption is already in hand," he said. "Anyone involved in the crime should be dealt with without exception."

Faisal, a member of House Commission V on labor affairs, argued that even though the project did not directly benefit workers, everything should still be made public.

The commission once confronted the then minister of manpower Abdul Latief about the alleged corruption in the funding for the towers' construction but he sidestepped the inquiries, he said.

The legislator also said he doubted the company's claim that 60 percent of the space offered in the two towers for rent had been already been leased.

As of April last year, PT Jamsostek had 15.8 million members and assets worth Rp 7 trillion.

The company is building two 25-story towers with a total office space of 146,000 square meters, 8,000 square meters of which will be available for rent.

The Supreme Audit Agency has also found that PT Jamsostek had "wasted" Rp 915 million when its cooperation with state-owned money printing company PT Peruri went sour.

PT Jamsostek awarded PT Peruri to print Jamsostek membership cards, but the latter subcontracted the job to another company, PT Pusako Anai Permai.

The agency said PT Jamsostek did not file a complaint over PT Peruri's breach of contract. (pan)