Suit on Jamsostek's directors questioned

JAKARTA (JP): Judges from the Jakarta State Administrative Court yesterday began studying the legality of the class action suit against the misuse of funds by PT Jamsostek directors.

"I will study the lawsuit, whether it is eligible to proceed or not," Judge Lintong Oloan Siahaan told journalists after presiding over a closed preliminary hearing of the case here yesterday.

Lintong adjourned the hearing to Jan. 12.

A group of lawyers from the Indonesian Legal Aid and Human Rights Association (PBHI) acting on behalf of more than 100 workers filed the suit last week.

PBHI Executive Director Hendardi said the suit was directed against Jamsostek president director, the finance and investment director and the head of the investment division.

He said PBHI had received more than 104 power of attorney letters requesting the case be taken to court.

The plaintiffs demanded that the orders instructing money be drawn from the state-owned workers insurance PT Jamsostek to finance the deliberations of the manpower bill be revoked and declared nullified.

After widespread media scrutiny over the affair, Minister of Manpower Abdul Latief claimed earlier this month that the use of Rp 2.85 billion (US$565,000) from Jamsostek funds was under President Soeharto's orders.

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

Press reports have cited documents saying that Rp 7.1 billion of the funds was used. But Jamsostek's president Abdillah Nusi said later that only Rp 3.1 billion had been withdrawn.

PBHI said documents obtained by the group, and cited in the lawsuit, show that Rp 5.1 billion was drawn from Jamsostek funds.

Latief claimed the money was used to pay for hotel accommodation, food and secretarial and transportation expenses during the two-month deliberation at Hotel Horison in Ancol, North Jakarta, and at Kartika Chandra Hotel in South Jakarta.

PBHI asserted that even though the President had issued the order, PT Jamsostek directors were still legally responsible for the use of the workers' insurance funds for activities outside the interests of the 14.5 million workers who contribute to it annually.

Jamsostek's assets are estimated to be worth Rp 5.3 trillion, with cumulative profits in the past three years reaching Rp 476 billion. (10)