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Speculation on misuse of President's 'donation' brushed aside

| Source: JP

Speculation on misuse of President's 'donation' brushed aside

Annastashya Emmanuelle, The Jakarta Post, Jakarta

Vice President Hamzah Haz brushed aside on Thursday
speculation of a misuse of Rp 30 billion in state funds which
President Megawati Soekarnoputri promised to the military and
police, claiming that the "donation" could be accounted for in
the revised 2002 state budget.

"There is no problem whatsoever with the disbursement. It does
not violate the draft budget as it can be accounted for in the
revised budget," Hamzah told reporters after chairing a Cabinet
meeting at the State Secretariat.

The Vice President made the remarks after several legislators
questioned the source and the accountability of the fund, as it
was not clearly seen in the budget.

Megawati pledged in February to allocate the Rp 30 billion in
question for the renovation of military and police housing
facilities.

The money is to be transferred to TNI commander Adm. Widodo
A.S. and be shared equally among the three military branches --
the Army, Navy, Air Force -- and the National Police.

State Secretary/Cabinet Secretary Bambang Kesowo explained
earlier that the money was taken from the surplus of the
Presidential Aid (Banpres) fund, which was maintained for
emergency situations, such as large-scale natural disasters or
social unrest.

"The military housing is in such a poor state that it needs
immediate assistance," Bambang added.

Djamal Doa of the United Development Party (PPP) proposed on
Tuesday a motion to question the President over the funds.

Djamal, however, immediately reconsidered the move the next
day, claiming that his sudden about face occurred after "an
adequate explanation" from PPP Secretary General H. Alimarwan
Hanan, who is also state minister of cooperatives and small and
medium enterprises.

"In my capacity as PPP's secretary general, I appreciate
(Djamal's) decision to change his mind. It is better that such a
motion be retracted. According to the procedure, the government
can account for such expenditures in a revised state budget," he
said after the Cabinet meeting.

PPP is chaired by Hamzah, whose vice presidential bid last
year was supported by Megawati, at the expense of House of
Representatives Speaker Akbar Tandjung.

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