Return of state funds halts inquiry into Rp 7.1b scam

JAKARTA (JP): Assistant to the Head of Special Crimes at the Jakarta Prosecutor's Office Andi Sjarifuddin said on Wednesday that the return of "unaccounted" funds established that his office had no case in the Rp 7.1 billion corruption scam at state-owned insurance company PT Jamsostek.

"Of the Rp 7.1 billion, some Rp 4.6 billion was returned to PT Jamsostek. The rest was used to buy electronic equipment like computers. It was accounted for," Andi told reporters at the Central Jakarta District Court.

"The charge was that the scam had caused state losses. But, there were no state losses, since the money was returned."

Andi was responding to reporters' questions on the issuance of an official letter on Sept. 6 by the then Head of the Jakarta Prosecutor's Office to halt investigation into the missing Rp 7.1 billion. The letter was signed by Lukman Bachmid, who is now Secretary to the Deputy Attorney General for Supervision Affairs.

The investigation stemmed from allegations that former manpower minister Abdul Latief, who is owner of the ALatieF Corporation that includes retail firm PT Pasaraya Toserba Jaya and the Ambhara Hotel, had misused funds from PT Jamsostek.

The funds were allegedly used to finance the deliberations of the manpower bill.

Latief was the manpower minister from 1993 to 1997 under Soeharto. The bill was deliberated in 1997.

Latief said previously that former president Soeharto condoned the use of the funds to finance the bill.

Andi added that there was no law stating that a corrupt act would still be considered as corruption if funds were returned and there were no state losses. He was referring to the old anti- corruption Law No. 3/1971.

However, Article 4 of the new Law No. 31/1999 on anti- corruption clearly states that despite the return of state funds, a corrupt act must still be prosecuted as corruption.

"This case happened before the enactment of the new anti- corruption law.

"Therefore, we refer to the old anti-corruption law," Andi said.

Latief earlier said that the ministry was short of funds at the time, while the government was pressed to establish a crucial labor law in the face of many problems.

He also came under severe criticism for allegedly paying members of the House of Representatives (DPR) to help pass the controversial bill, proposed by his ministry.

Andi added that the state losses were returned even before his office had started the investigation. (ylt)