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)