Probe of Jamsostek's management urged

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)