PT Ancol official dismissed over financial scandal
PT Ancol official dismissed over financial scandal
JAKARTA (JP): President director of PT Pembangunan Jaya Ancol
(PJA) Rushadi has paid a dear price for allowing the company to
sponsor overseas trips for a group of city councillors and
officials.
An extraordinary shareholders meeting of PJA, which is partly
owned by the city administration, on Wednesday evening decided to
honorarily dismiss Rushadi.
Head of the City Economy Development Office Dameria Saragih
announced on Thursday that the meeting also named property
director Jahja Bambang Riabudi as acting president director.
Dameria said the decision was based on the results of a
financial audit on the overseas trips conducted by public
accountant Prasetio Utomo & Co.
"It was found in the audit that the management of the Ancol
leisure complex developer had exceeded its budget and disbursed
funds to finance overseas trips without the consent of both its
shareholders and chief commissioner," Dameria told a media
conference at the City Hall.
When asked about the replacement of Governor Sutiyoso from his
current position as the company's chief commissioner, Dameria
said the issue would be decided on in the next extraordinary
shareholders meeting, scheduled for Feb. 23.
Dameria was referring to the 1999 Law No. 22 on regional
autonomy which bans a governor from playing a role in a decision
making process in companies owned by his or her province.
However, she would not comment on the legal consequences of
Rushadi's role in the scandal.
The Jakarta Prosecutors' Office has begun its formal
investigation into the case, with the city's top two executives
-- Sutiyoso and City Secretary Fauzi Bowo -- set to head the list
of people to face questioning.
Administrative measures have also been imposed on nine city
officials who joined the trips, mostly low-ranking ones. They
were found guilty of making a trip without the governor's
approval.
According to a recent circular issued by the Ministry of Home
Affairs and Regional Autonomy, every overseas trip conducted by
city officials requires presidential or state secretariat
approval.
The request letter must be submitted to the Ministry of Home
Affairs and Regional Autonomy at least three months in advance.
Meanwhile, a source close to PJA said that Rushadi challenged
his dismissal, citing the unfinished investigation conducted by
the City Prosecutor' Office.
Rushadi, the source who requested anonymity said, would take
legal actions to restore his name.
The overseas trips drew controversy due to allegations that
PJA paid Rp 2.1 billion to fund comparative studies trips between
Oct. 9 and Oct. 15 to Cape Town and Johannesburg, Sydney, and
Tokyo.
In its investigation report submitted to the governor, the
City Inspectorate stated that Rushadi had proposed to the
governor a US$270,000 budget for the trips in which he also took
part. Without waiting for the governor's approval, Rushadi
disbursed $311.286.
The report said the fund was taken from the company's 2000
budget set for its coastal reclamation master plan.
It also said PJA also funded the expenditures of 13 officials
who joined the overseas trips.
The City Inspectorate also found that the City Council paid on
Dec. 4 last year Rp 1.36 billion in reimbursement to the company.
(07)