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Saturday, December 01, 2007

Lapindo Mud Fund Disbursed

Friday, 30 November, 2007 | 17:42 WIB

TEMPO Interactive, Jakarta: The government has disbursed a bail-out fund amounting to Rp500 billion for Sidoarjo Mud Handling Agency (BPLS). According to Finance Minister Sri Mulyani Indrawati, the funds are part of the 2007 State Budget.

“The disbursement mechanism is like the state budget,” she told Tempo in Jakarta yesterday (29/11). She said she had already explained it in a letter to the Corruption Eradication Commission (KPK).

As regards accountability and legal matters suggested by KPK, she said the government was solving the matters. “But that doesn't delay the budget (from being disbursed).”

The Director General of Budget at the Finance Department, Ahmad Rojadi, explained that the fund disbursement is in line with the Presidential Regulation No. 14/2000 on BPLS. “The fund disbursement takes the KPK's suggestion into account.”

KPK twice sent a letter to the government. The point is the institution suggested the government take care in using the fund and to make an agreement with Lapindo.

According to KPK spokesperson, Johan Budi S.P., the measure is necessary as the mudflow cause has not yet been determined. Moreover, in line with the public complaint, Banjar Panji one well drilling was not in line with the procedures.

BPLS Head, Sunarso, hopes the Rp500 billion fund could be received next week. So far BPLS owed three state-owned enterprises which built the dike, PT Wijaya Karya, PT Adi Karya and PT Brantas Abipraya.

A member of the House Energy Commission, Ade Daud Nasution, supported KPK's suggestion. He wants the funds that have been disbursed for the Lapindo mud case to be audited soon. “Because the legal status of Lapindo is not yet clear,” he said at Parliament, Jakarta.

Earlier, Energy and Mineral Resources Minister Purnomo Yusgiantoro, said that the government should not haphazardly call the Lapindo case a natural disaster. If it is a disaster, all costs that have occurred must be repaid by the government.

NIEKE INDRIETTA | GUNANTO E

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