Sudomo, Bokha condemn misuse of insurance funds

JAKARTA (JP): A senior official and a unionist blasted Thursday the alleged misuse of workers' insurance money to grease the wheels of the House of Representatives into passing the controversial manpower bill.

Chairman of the Supreme Advisory Board Sudomo, who is also the former manpower minister, called the Rp 3.1 billion (US$2.15 million) reallocation of state-owned workers' insurance company PT Jamsostek funds for legislators deliberating the bill "unlawful".

He said the use of the funds was not authorized by the minister of finance. The finance minister represents the government as the owner of the company, and the outflow of funds needs his approval, he said.

Wilhelmus Bokha, the chairman of the Federation of the All Indonesian Workers Union (FSPSI), also called the alleged misuse of funds a violation of "moral and legal norms".

The Jakarta Provincial Prosecutors' office had questioned eight people from the Ministry of Manpower, Jamsostek, the House of Representatives and a hotel in Jakarta after the company's president Abdillah Nusi admitted the money had been used to finance the deliberation of the bill in a hotel between July and September this year.

The prosecutors' office spokesman, Agus Sutoto, said the investigators had collected enough "evidence for the case" and would not question the eight again, but did not rule out the possibility of questioning other people.

Bhoka said the use of Jamsostek's funds, which he also called unlawful, occurred because the insurance company had no appropriate supervision system.

"PT Jamsostek failed to include representatives from FSPSI and the Indonesian Employers' Association (Apindo) ... (in the reallocation of the funds)," he said.

He called on the Development Finance Comptroller and the Attorney General's Office to investigate the case thoroughly.

The 1992/1997 House of Representatives passed the bill on Sept. 11. The manpower law will become effective on Oct. 1 next year.

Sudomo said the Minister of Finance could also reprimand PT Jamsostek's president if it was proven that the money was misused.

The retired admiral recalled a situation in the late 1980s, when then minister of finance Radius Prawiro rejected his request to invest some of PT Astek's (the first state-owned insurance company before it was renamed PT Jamsostek) money in the Jakarta Stock Exchange.

"Pak Radius told me the nominal values in the JSX were always fluctuating," he said.

Sudomo, the 1983/1988 manpower minister, said Jamsostek's money could only be used for activities to improve the workers' welfare.

"It can only be used for the workers' medical allowance and life insurance, or for the workers' training purposes," he said.

He rejected Minister of Manpower Abdul Latief's earlier statement that the use of the money for the bill deliberation would indirectly benefit workers in the future.

"Jamsostek's money should directly reach the workers' hands," he said.

Sudomo dismissed speculation that the disclosure of Jamsostek's money was politically motivated.

"It has nothing to do with Pak Latief's future career in the cabinet," he said. "It's too premature to say as the new president and the cabinet lineup are yet to be elected."

He disagreed with idea of asking Latief to resign.

"It's not common practice here to have an official resign from his or her post," he said. (imn/aan/10)