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)