JAKARTA - Indonesian Corruption Watch (ICW) described their studies to Committee IV House of Regional Representative (DPD) on polemics administration fee or honorarium from the Regional Development Bank (BPD) to the head of the region along with other elements of the Regional Leadership Council (Muspida). ICW concluded, the practice is illegal or illegitimate and categorized as corruption.

Venturing the Hearings (SDP) of Committee IV DPD with ICW, deputy coordinator of ICW Political Corruption Division Adnan Topan Husodo urged the Committee IV DPD to request the Ministry of Home Affairs (Kemendagri) to prohibit local officials received fees or any other designation of BPD. Earlier, Minister of the Interior Gamawan Fauzi said the administration fee is a legitimate policy.

"We are troubled by Gamawan’s statement that the fees received by regional head either legally or illegally," he said, accompanied by Chief of Investigation Division of ICW Agus Sunaryanto and ICW researcher of Investigation Division Tama Satria Langkun in DPD Building Parliament Complex, Senayan, Jakarta, Wednesday (3/2). ICW audience with the Committee IVDPD led by Tony Tesar (Papua), accompanied by two deputy chairmen, Abdul Gafar Usman (Riau) and Ella M Giri Komala (West Java).

ICW is reviewing the legality of giving payment to the head position in the BPD as provincial enterprises (BUMD), violations of rule, and conflicts of interest.

Adnan said the practice of awarding honorariums by BPD violates laws and regulations of Article 5 of Government Regulation No. 105 Year 2000 on the Financial Position of Regional Head and Deputy Head. The article states the regional head and deputy regional head are not permitted to receive double income or facilities from the State.

Not only violating the PP, but the practice also violates the rules set by Bank of Indonesia (BI).

Meanwhile, Maluku DPD John Pieris said, these ICW’s findings could be used as the entrance to prosecute corrupt policies. There is a possibility the KPK is investigating the practice." These findings could be used as the entrance to prosecute corrupt policies," he said.

John also said the government should improve the bureaucracy and mental officials. Practices that ignore the public sense of justice should be terminated immediately.

Responding to ICW’s study, Committee IV DPD will invite relevant experts and ministers, especially Gamawan. The study also describes the financial management system should be improved in order to suppress violations of laws and regulations.

However, whether the salary administration practice is indicated as a corruption or not, the Committee IV DPD will review it. Committee IV DPD assessed that there are reasonable and unreasonable  budgets for local officials. "It is likely we call it at the end of February," he said.

John added, such emoluments are set in the governor's decree is fair and legal policies. "It's been going on for years. We must be careful look at this case. Is there any element of corruption or not still needs to be reviewed," he said.

Conflict of Interest

ICW also explained to the Committee IV DPD that Gamawan statement allows the regional head to receive honorarium of BPD and it is in contrast to the spirit of the fight against corruption. The statement also biased interest because while becoming Governor of West Sumatera, Gamawan received payment beyond the specified income.

ICW highlighted the extra fees earned by Gamawan that were received by governors in Indonesia as one of the elements of the Regional Leadership Council (Muspida) under Presidential Decree (Keppres). According to Tama, the legal honorarium received by Muspida element in West Sumatera, including Gamawan, is the Decree of the Governor of West Sumatera signed by himself.

Citing the Audit Reports Audit Agency (BPK) the Representative Office of Padang, Gamawan received honorarium outside income as one of Muspida West Sumatera element. During the years 2007-2008, the total honorarium received Rp 96 million. Details, USD 51 million in 2007 and USD 45.9 million in 2008.

It means, Tama said, Gamawan’s statement regarding to the payment of Rp 5 million / month tax cut to Rp 4.2 / month does not correspond to reality. In 2008, Gamawan raised the honorarium as one of Muspida element from Rp 5 million / month to Rp 6 million / month.

Regarding Gamawan’s statement that the Supreme Audit Agency (BPK) was not make any problem out of the honorarium. Tama explained, BPK calculated the total waste that reached IDR 1.3923 billion. Gamawan also said in the past officer may accept payment/honorarium from BI. However, in 2006 there was a circular central bank governor that prohibit honorariums.

Quoting Gamawan’s statement, he added, "If I support the honorarium, I will not support fees. Honor is not a fee. The regional head is the shareholder power of BPD, so that it has the right to participate in the RUPS (Annual General Meeting of Shareholders). Is it not fair, if she got honorarium?"

According to Tama, regional head position as shareholder power of BPD should also be criticized because it could create a conflict of interest." The regional head plays a major role in determining the policy of giving honor to himself or his colleagues," he said.

In practice, as the findings of the Corruption Eradication Commission (KPK), honorarium is transferred to the personal account of regional heads. The transfer was in contrast to Article 11 of Regulation 105/2000 which states all regional financial transactions carried out through the local treasury. "Fee of BPD is allowed, as long as it is submitted to the local treasury, not to private accounts," he said.

Tama added, giving honorarium of BPD is also incontrast to the Letter of Bank Indonesia No. 71 SBI I DPNP / DPNP dated October 20, 2005 which ordered all banks not to give a gift or a special interest for officials and state officials.

Besides Gamawan as Governor, other elements of West Sumatera Muspida received honorarium such as deputy governor, chairman of the Regional Representatives Council (DPRD), Head of the High Court, Chairman of the Religious Court, Chairman of the State Administrative Court (PTUN), Commander Air Force Base (Dan Lanud), and the Regional Secretary (Sekda).

Agus said, the ICW is exploring relationships with the directors of regional heads of BPD because the fee provision was not necessarily but there are certain advantages allegedly received by the directors of BPD. For example, in West Nusa Tenggara (NTB), the directors of BPD benefited from pension fund policies issued by regional heads. Fortunately, there are already high prosecutor summoned several suspects from the bank.

ICW also presented to the Committee IV DPD administration fee of BPD in six provinces, namely North Sumatera, West Java, Central Java, East Java, East Kalimantan and Jakarta that cost the state Rp 360,311 billion. BPD North Sumatera gave Rp 53.811 billion, BPD West Java - Banten (Rp 148.287 billion), BPD Central Java (Rp 51.064 billion), BPD East Java (Rp 71.483 billion), BPD East Kalimantan (Rp 18.591 billion), and Bank of DKI (Rp 17.075 billion).

Currently , the KPK investigated six BPD in the six provinces and found the flow of illegal funds of Rp 360 billion during the years 2002-2008 in return for official save budget (APBD) funds in the relevant bank .

Granting honorarium to local officials and the Regional Leadership Council (Muspida) were considered in contrast to the Act and cause waste of state money. ICW asked these practices that took place since the New Order to be abolished.

"The provision of honorarium to Muspida opposed to the legislation, Article 5 of Regulation No. 109 Year 2000 on Regional Head and Deputy Head," wrote ICW in its release to detikcom, Sunday (7/2/2010).

In the Act, it is mentioned, the regional head and deputy regional head is not permitted to receive double income and facilities of the State. In chapter 8 was also confirmed, for the task implementation of regional head and deputy regional head provided operational costs used for coordination, response to social insecurity and so forth.

Giving this honorarium, according to ICW is also potentially abused. Because the officer who has the authority to make regulations may determine its own salary scale and anyone who may receive an honorarium.

ICW then show examples of cases when Gamawan Fauzi still serving as governor of West Sumatera. "Decree issued by Gamawan while serving in 2007 and 2008 actually gave the Muspida’s honorarium to other parties prescribed by Presidential Decree which are deputy governor, chairman of DPRD, Dan Lantamal, the chairman of the High Court, the chairman of the Religious Court, the Chairman of PTUN, Dan Lanud, and regional secretary," said ICW in a release.

Whereas in Presidential Decree No. 10 Year 1986, Article 4 states that only 4 people  are classified as the officials, they are the governor, the Regional Commander or officer appointed by the Commander of the Armed Forces, Police Chief, and high attorney..

In addition, according to ICW, the honorarium provision is also caused by peculation, because the legal basis is not a strong.

"In the case of West Sumatera, the decree of Governor Gamawan that provide Muspida honorarium regularly every month during 2007 and 2008 led to wastage of Regions Financial (BPK version) of Rp 1.3 billion," said ICW in a release. Similar conditions also occured in Jember, and North Sumatera.

Giving the honorarium to Muspida also assessed by ICW has created a conflict of interest. Because law enforcement officials have received honorarium of Muspida the legal process tends to be unfair when it involves officials or local government.

09 Februari 2010