Agency Suspects Graft in Indonesia's Social Affairs Ministry
Heru Andriyanto | March 19, 2010
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The Attorney General’s Office said on Friday it had initiated an investigation into corruption allegations involving the Rp 37.18 billion ($4 million) purchase of clothing and sarongs by the Ministry of Social Affairs.
The money for the purchase was taken from the ministry’s budget for a “social prosperity” business program that had collected Rp 629.7 billion between 2002 and 2008.
However, AGO spokesman Didiek Darmanto said the money for the program was allegedly misused to provide monthly incentives to ministry officials between 2002 and 2005, including financing overseas trips.
“But we are currently focusing on the clothing and sarong purchase, which was conducted in violation of existing regulations,” Didiek said.
He said the purchase failed to follow standard procedures, including obtaining price estimates to compare with the market price.
Instead of opening bids for the purchase, the ministry directly appointed one supplier, who has been identified as Chep Rukhiyat, he said.
“According to Chep Rukhiyat, he gave money and gifts to ministry officials,” Didiek said.
The ministry was led by Bachtiar Chamsyah when the suspected misappropriations occurred. The former minister is currently a suspect in a separate graft case being investigated by the Corruption Eradication Commission (KPK).
The KPK has charged Bachtiar with collaborating with a private importer, PT Atmadhira Karya, to mislead the government about the number of live cows imported by the ministry from Australia in 2004.
Prosecutors have yet to name any suspects in this latest case at the ministry.
“We are still at the stage of questioning witnesses and collecting more evidence,” Didiek said.
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