Ridwan Max Sijabat, Jakarta – Lawmakers here Tuesday lashed out at the management of state-owned labor insurance firm PT Jamsostek for failing to boost transparency and professionalism in carrying out social security programs for workers.

Speaking at a hearing between Jamsostek directors and House of Representatives Commission VI for trade, industry, state enterprises and cooperatives, they categorically criticized the company's investment policy, saying it could create opportunities for corruption as happened in the past.

"It is an unwise policy to invest a bigger part of its Rp 33 trillion in assets to purchase mid-term bonds and prospective shares in the stock market. This policy will give space and opportunity for the management to abuse their power to enrich themselves," Nusron of the Golkar Party told the meeting.

He said the management had many times explained its investment policy to the House but it and the government were not transparent about how the investment had been managed.

The Corruption Eradication Commission (KPK) was investigating a number of graft scams in Jamsostek, which allegedly served as a cash cow for politicians.

The South Jakarta District Court recently sentenced the company's former president, Achmad Djunaidi, to six years' jail for corruption over his decision to purchase several companies' short-term bonds, which caused billions of rupiah in losses to the state.

Ate Sugandi, a Democratic Party legislator, questioned current Jamsostek president Iwan P. Poncowinoto's one-man-show policy and his alleged nepotistic decisions to promote certain employees close to him, as well as his alleged recommendation for certain companies to win tenders in the company.

"We have received reports that Iwan Poncowinoto promoted certain employees close to him to strategic positions and recommended a certain company belonging to one of his children win an IT project for the company," he said.

Iwan recently said he never recommended any company be offered the project.

Commission VI members also questioned the absence of Jamsostek director of service and operations Tjarda Muchtar from Tuesday's hearing.

"The absence of a director from this meeting shows the board of directors is not solid," Ate said.

Iwan conceded he did not know why Tjarda did not show up.

Reliable sources at Jamsostek revealed that Iwan had written a number of times to the company's board of commissioners and the state minister for state enterprises to request Tjarda be replaced but received no response.