Sutiyoso denies knowledge of 'incentives', vows probe

Sutiyoso denies knowledge of 'incentives', vows probe

JAKARTA (JP): Governor Sutiyoso vowed on Friday to
investigate allegations that city-owned companies made under-the-
table payments worth hundreds of millions of rupiah to auditors
from the Development Finance Comptroller (BPKP).

"Such practices should not be conducted. This is no longer the
time," he said.

Despite an executive's statement that the governor was fully
aware of the practice, Sutiyoso insisted the firms were not
permitted to make an unaccounted outlay from their budget.

It was "unnecessary", he added, for the auditors to receive
the payments outside of their regular salary because the audits
were part of their job duties.

In a hearing at the City Council on Thursday, president of
city-owned market operator PD Pasar Jaya Syahrir Tanjung admitted
the firm paid "incentives" totaling Rp 60 million to BPKP
officials who audited the firm's 1997 financial report.

"It's normal. It's for their time auditing our firm, which
took eight months," Syahrir said after meeting with members of
Commission B for economic affairs.

He declared the practice occurred with Sutiyoso's knowledge
and approval.

The governor claimed on Friday to know nothing about the
payments, but offered that it could be a legacy of the rampant
corruption in the bureaucracy in the past.

"I have no idea. But it might be (part of the) old tradition."

Syahrir's statement angered many councilors, particularly
after they learned that the 10 BPKP auditors were paid in
December last year at the height of the reform movement to
eradicate corruption, collusion and nepotism.

The city owns at least 60 companies.

Many also believe that the firms make similar payments to
auditors from the city inspectorate and tax offices.

Councilor Lukman F. Mokoginta called on Friday for a serious
investigation of the allegations.

"It's an economic crime," Lukman said.

Sutiyoso said he ordered deputy governor for administrative
affairs Abdul Kahfi, who also heads the city's reform team, to
probe the matter.

"I have already asked Pak Kahfi to report to me soon after the
completion of his investigation," he said.

The governor established the reform team in June 1998 to rid
the administration of corruption, collusion and nepotism in the
city administration. (jun)