Suit on Jamsostek's directors questioned

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said later that only Rp 3.1 billion had been withdrawn.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)