Thu, 23 Apr 1998

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)