Indonesian Political, Business & Finance News

Three to be questioned over Games sticker row

| Source: JP

Three to be questioned over Games sticker row

JAKARTA (JP): State Minister of Youth Affairs and Sports Agung
Laksono will reportedly summon three executives of the 19th SEA
Games underwriting subcontractor to answer questions on their
alleged involvement in a Rp 1 billion scam involving fund-raising
stickers.

Deputy chairman of the Indonesian Consumer Foundation (YLKI),
Agus Pambagio, speaking at a media conference following a meeting
with Agung yesterday, said the three employees of PT Angkasa
Rona Graha (ARG) were held responsible for the irregularities
found after an audit by public accountant KPMG Hanadi Sudjendro
and Co. of the Games, held last year.

"Pak Agung also promised to allow the Jakarta Prosecutor's
Office to investigate the case if there is adequate evidence to
do so," he added.

The foundation's chairwoman Tini Hadad and her predecessor
Zoemrotin K. Soesilo, Games' consortium executives Bambang Yoga
Sugama and Enggartiasto Lukito and KPMG's representative Herianto
Lutantowidjojo were also present in the meeting.

Agung revealed on Monday that the audit of the consortium
found that Rp 1.185 billion in revenues from sticker sales did
not reach the consortium. PT ARG conducted the sales.

Agus speculated the financial irregularities were due to
collusive practices of the company's executives and officials of
state agencies with which it cooperated to sell the stickers.

"The money may have gone to their personal accounts," he said.

Both Bambang and Enggartiasto skipped the media conference.

The stickers, sold from December 1996 to July 1997, were
charged on telephone users, electricity consumers, air travelers
and motorists extending their driving licenses.

Results of the audit found PT ARG collected Rp 18.75 billion,
far below its commitment of Rp 50 billion.

The consortium took over the sale in cooperation with state
companies and agencies, and managed to raise an additional Rp
24.474 billion.

Agus criticized the consortium for not disclosing the
irregularities earlier, although they had already known about the
alleged scam.

"Had the consortium announced the finding earlier, the public
would have not lodged suspicion of them," Agus said.

He said the consumer foundation would keep on eye on the
investigation of the scam.

Curiosity

The three representatives of the consumer foundation said they
were skeptical about "the small amount of the leak", because of
the lack of transparency in the sale of stickers.

"We're curious on how the consortium suffered a Rp 64 billion
deficit while, based on a rough calculation, they could earn more
than the amount they reported," Agus said.

He said the foundation would appeal to the state audit agency
(BPKP) to examine state-owned companies and provincial revenue
agencies involved in the sale of the stickers.

The consortium responded to the foundation's curiosity
yesterday, saying they would allow the public accountant firm and
the foundation to check the personal accounts of its executives,
according to Agus.

"We do appreciate their willingness," he added.

Zoemrotin regretted what she called the mismanagement in the
consortium's implementation of its tasks.

"They never announced how many stickers they had sold and how
many more were still being distributed," she said as an example
of the slack management.

"Nobody could control the consortium's work. We cannot just
calculate their earnings from the stickers sale, because many
people didn't receive the stickers although they paid for them,"
she said. (emf)

View JSON | Print