Susilo questioned over Geneva villa controversy

Rendi A. Witular, The Jakarta Post, Wellington

Controversy over the US$8 million villa bought by the government in Geneva, Switzerland, for the Indonesian permanent representative to the United Nations marked President Susilo Bambang Yudhoyono's visit to New Zealand on Thursday.

The President expressed his concern about the fuss, when an Indonesian citizen living in New Zealand requested Susilo's clarification of circulating reports that the government had bought the house using humanitarian aid for tsunami victims in Aceh.

The Indonesian national, Riyadi Soebagyo, said he was disappointed with the government's decision to "live in luxury at an expense of people's suffering."

"I have read this report in the media and I'm disappointed. Could you please clarify this Mr. President?" Riyadi asked Susilo during a dialog between the visiting President and the Indonesian community here.

Susilo said he would take stern action if he had found that the money to buy the house came from the humanitarian aid for Aceh. He, however, said there needed to be clear evidence of wrongdoing before he would act.

"If there is sufficient evidence, I will deal with the person responsible. But if there is no proof, we should question the reports," Susilo said.

Meanwhile, Minister of Foreign Affairs Hassan Wirayuda insisted the villa was not bought using the tsunami aid because it had been purchased in October last year before the December tsunami.

"The villa was not purchased using the financial aid and we completed the deal in October," Hassan said.

Minister of Finance Jusuf Anwar said his office had never disbursed any humanitarian aid extended by donor countries and agencies to buy a house.

Susilo said he would soon issue a new regulation governing the procedures to procure goods and services for the state. The regulation would prevent officials from marking up prices or attempting fictitious procurements.

"I will soon instruct all government audit agencies and supervisory bodies to embark on an audit of all asset procurements for the state since there are indications of abuse," Susilo said.

The audit would be conducted in all ministerial offices, government institutions and state enterprises, he said.