Using Telkom's dividends for Wisnu project illegal
Using Telkom's dividends for Wisnu project illegal
JAKARTA (JP): Using the government's dividends from PT Telkom
to finance the construction of a giant Garuda in Bali is not
legal, according to the government's audit agency (BPKP).
The audit agency's chairman, Soedarjono, said that the use of
the dividends for the construction of the statue was illegal,
regardless of the fact that it was approved by the company's
shareholders.
"It is illegal for dividends of a state-owned company to be
used by the ministry which oversees it. It violates procedure,"
he told the press Thursday.
The shareholders of Telkom, which went public on the Jakarta,
London and New York stock exchanges last October, approved the
management's proposal to set aside around Rp 30 billion of the
company's dividends to help finance the government-sponsored
project.
The 130-meter tall Garuda Wisnu statue, depicting the Hindu
God Vishnu on his mount, the mythical Garuda bird, will be built
in a 200-hectare park in Bukita Ungasan, Badung, in the southern
part of Bali.
Giant
The giant statue will cost around Rp 80 billion and the
development of the 200-hectare park will cost around Rp 200
billion (US$86 million).
Minister of Tourism, Post and Telecommunications Joop Ave had
earlier insisted that using Telkom funds for the project was
perfectly legal.
He said the use of the dividends had been approved by the
company's shareholders at the annual shareholders meeting last
year.
Soedarjono, however, argued that the approval of the company's
shareholders was not enough to legitimize the use of Telkom's
funds for purposes other than projects stipulated in the budget
plan.
He said that this abuse of state funds could not be tolerated
because it would not only affect the government's budgetary
procedures but could also widen the financial gap between
ministries.
If such practices were tolerated, they would incite jealousy,
especially at those ministries which have no direct control over
state companies. (hen)