Sidoarjo councillors in hot seat over Rp 21b graft charges

Sidoarjo councillors in hot seat over Rp 21b graft charges

ID Nugroho, Sidoarjo, East Java

A prosecutor asserted on Wednesday that all 45 councillors on
Sidoarjo regental council could be implicated in graft
allegations involving Rp 21 billion (US$ 2.2 million).

In a court session here, prosecutor E. Supriehanto said that
the councillors had received state money allegedly embezzled by
council speaker Ustman Ikhsan, who was being prosecuted as a
defendant in the high-profile case.

"Part of the embezzled funds was channeled to the councillors
via the defendant," said Supriehanto in the hearing. Ustman is
being charged with stealing state money via the creation of
fictitious projects such as training seminars, operational
assistance programs and charities.

The matter was highlighted after auditors from the Sidoarjo
Prosecutor's Office discovered financial irregularities in the
2003 regental budget. The report found a markup of Rp 21 billion
in funds allocated to support Sidoarjo council's operational
activities.

In the indictment, prosecutor Supriehanto explained that the
regental council was allocated operational funds of Rp 870
million or only 0.75 percent of the total Sidoarjo regental
budget last year, which amounted to Rp 116 billion (US$ 12.2
million).

However, auditors found that the council had used Rp 21
billion in funds for training seminars, operational assistance, a
comparative study and other items, according to Supriehanto.

Part of the funds was said to have been used to finance
training seminars and an official trip to provinces in Sumatra
and elsewhere. The council reported that it spent Rp 900 million
on a training seminar at a hotel in Malang, East Java, last year,
but the seminar was proven to be fictitious.

Instead of being used to finance the seminar, the money was
channeled to the councillors and other parties involved with the
fictitious seminar. Council speaker Ustman and his deputy, Imron
Syukur, received Rp 17 million each, while 43 other councillors
were given Rp 12.5 million each.

Some of the money, some Rp 19 million, was also channeled to
employees of the hotel for their collusion in producing bogus
receipts.

The council also embezzled money intended for financing a trip
to Sumatra. Of the total Rp 580 million in funds earmarked for
the trip, Rp 18 million went to the council speaker and Rp 16
million went to the deputy speaker, while 43 other councillors
received Rp 13.5 million each.

Deputy speaker Imron Syukur refused to comment on the charges.
"We shall read and observe the prosecutor's indictment before we
make a move," he told The Jakarta Post.

Asked whether councillors other than Ustman might also be
charged with involvement in corruption, prosecutor Supriehanto
said that the Sidoarjo Prosecutor's Office was looking into the
case. The court hearing would be adjourned until next week.

Ustman's lawyer Bramta J. Ketaren previously stated that his
client had not done anything wrong, saying that it was an
administrative error and not corruption.

Local anticorruption watchdog activist Dandi Sunanto said that
the executive might also be implicated in the case. Dandi, from
the Upholding Reform Group, argued that it was impossible from a
legal standpoint that the Rp 21 billion could be disbursed
without the official endorsement of the regent, Win Hendrarso.

If all Sidoarjo councillors are finally taken to court, it
will be yet another instance of collective graft involving
councillors. Similar allegations have come to light in several
provinces, municipalities and regencies in the country in the
past month, including in West Sumatra.