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)