Return of state funds halts inquiry into Rp 7.1b scam

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)