Sutiyoso rejects councilors' request

Sutiyoso rejects councilors' request

JAKARTA (JP): Governor Sutiyoso rejected on Friday a request
for severance payments proposed by 75 outgoing councilors to
cover personal debts at city-owned Bank DKI.

The governor said fulfilling the demand of the councilors, who
due to the recent massive reform movement served only two years
of their five-year terms, would be unethical.

"The city councilors do not deserve such payments, since their
contribution to the city is unclear," Sutiyoso said.

He emphasized that his stand on the decision was
nonnegotiable. The active three-star Army general said he did not
want to hear further debate on the matter.

Jonggi JP Sihombing from the Golkar faction said a day earlier
that all of the city councilors needed the money to repay debts
incurred during their tenure.

He said each councilor deserved a payment of Rp 77 million
(US$10,700) from the city administration for their contribution
to the administration.

City council speaker Edy Waluyo confirmed on Friday Sutiyoso's
decision.

"The governor told us that there's no legal base for such
payments," Edy said after meeting with Sutiyoso.

He said the governor's rejection was understandable, because
none of the existing rules regulates severance payments for
councilors.

His remarks contradicted statements made to reporters before
the meeting, in which he said he would struggle to meet his
colleagues' demand.

Sources say Bank DKI had offered loans to the councilors with
their positions as members of the city council as the security
for the loans.

The extent of the councilors' debts is reportedly between Rp 5
million and Rp 150 million per individual.

The sources estimated Bank DKI face could face bad debts worth
some Rp 2 billion.

According to the sources, the bank approved the loans under
the assumption that the councilors would fulfill their five-year
term.

Hermansyah Helmi of the Golkar faction "regretted" Sutiyoso's
decision, but said he "could understood" the reason.

"We can't do much about the governor's decision, since our
demand was said to have no legal base," he said.

Deputy head of the United Development Party (PPP) faction
Elishman Iljas, who owes Bank DKI Rp 50 million, shared a similar
view.

"I personally do not worry that much," he said.

He nonetheless complained of a recent letter from the bank
reminding him of the debt, saying he had no intention of reneging
on his debts.

The councilors will leave office next Wednesday, a move
sparked by the political turmoil in 1998, which resulted in the
election of new representatives, including those on the city
council. (03)