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.