PT Jamsostek denies land and financial scandals

PT Jamsostek denies land and financial scandals

JAKARTA (JP): State-owned social security company PT Jamsostek
strongly denied reports yesterday of alleged rampant corruption
at the company.

The firm's finance director, Ackmal Husen, told The Jakarta
Post that his company was open to any investigation of the
allegations.

The firm has documents proving that the allegations are
baseless, he said.

"Please, process errant officials of the firm in line with
existing laws if they are proven guilty of corruption," he said.

Ackmal made the remarks in response to a call by a House of
Representatives member for the government to seriously
investigate the alleged corrupt practices in the company.

Faisal Baasir of the United Development Party (PPP) said he
was disappointed with the lack of action taken by the government
to investigate the allegations.

The scandal includes the alleged appropriation of land on
which the company is building its multimillion dollar towers, the
misappropriation of Rp 63.6 billion ($7million) 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.

Minister of Manpower Theo L. Sambuaga said Thursday that he
would support an investigation by the police and the prosecutor's
office into the alleged corruption at the company.

"The manpower ministry will support and lend assistance if
needed in the investigation. Any officials found guilty of
corruption should be punished. I will ask the company's
management to be helpful in the investigation," he said.

However, he called on all members of society to refrain from
hastily and arbitrarily accusing the company's management because
the allegations had yet to be proven by a court of law.

Commenting on the towers' construction, Ackmal said yesterday
that PT Astek, the previous name of PT Jamsostek, purchased the
3,538-square-meter plot of land from its owner, PT Lippo Profi,
on Dec. 15, 1988.

"The land deal stipulates that PT Lippo Profi was the land's
legal owner and PT Astek will not face any claim on the land from
any third party," he said, quoting the contract of sale.

"So, it is erroneous for Mrs. Adrian Siegers, who claims to be
the land's rightful owner, to file suit against PT Jamsostek at
Jakarta High Court. If she is really the land's rightful owner
she should sue PT Lippo Profi," he said.

He said the land had been certified by the National Land
Agency in 1992 and the company obtained a building permit for the
towers from the Jakarta governor in 1994.

"So, I do not see that there is any problem with the land
appropriation because we have met all the legal and official
procedures for the towers' construction," he said.

The company's director of investment, Edward Azizi, who
accompanied Ackmal, said the firm was ready to face Mrs. Siegers
in the high court.

"The company will not pay any compensation to her for the
land. Let the court make a fair decision on the case and we will
respect it," he said.

Mrs. Sieger lost her first court case against PT Jamsostek at
the South Jakarta District Court in 1996.

She later appealed to the high court. The Jakarta Prosecutor's
Office has questioned both the company's president, Adillah Nusi,
and his predecessor, Sumakmur PK.

Edward also explained that his company had followed normal
procedure in tendering the project.

"The appointment of the project's contractor was based on a
public tender without management interference. A construction
company which has no links with the management was awarded the
contract," he said.

He said the two 25-story towers, which are nearly completed,
have a total office space of 146,000 square meters, a part of
which was available for rent. (rms)