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Fund scandal could haunt Wahid

Source
South China Morning Post - May 31, 2000

Chris McCall, Jakarta – President Abdurrahman Wahid may have saved his own political skin by accepting the resignation of a leading confidant.

Bondan Gunawan's resignation late on Monday from the post of state secretary came amid mounting controversy over an alleged scandal at the state commodities regulating body, Bulog, in which members of Mr Wahid's inner circle have been implicated. The revelation is strangely reminiscent of last year's Bank Bali scandal, which ended the re-election hopes of former president Bacharuddin Habibie and paved the way for Mr Wahid's election in October. Indonesia's top legislature, which appoints the president and has the power to sack him, convenes again in August to review Mr Wahid's record.

Johan Effendi, now a senior official of the religious affairs ministry, will be sworn in as Mr Gunawan's replacement today.

Although this scandal has not yet taken on the scale of the bank affair, its implications for Mr Wahid could be just as serious as that issue was for Mr Habibie, political analysts say. Mr Gunawan's rapid departure from the post he had occupied for less than six months might be best for all concerned, even bearing in mind his insistence he did nothing wrong, they said.

"Gus Dur might be able to retrieve something from this. It is better to cut him [Mr Gunawan] loose than keep the doubts hanging. He cannot afford to have any dirty laundry," said political analyst Wimar Witoelar, referring to Mr Wahid by his nickname. "It is not impossible that things like impeachment might be on the horizon."

Since his election, Mr Wahid has surrounded himself with long-trusted aides and friends, leading to allegations of the cronyism that marked former president Suharto's 32 years in power.

Like several other key cabinet figures, Mr Gunawan is an old friend of the President. His is the latest in a series of resignations from Mr Wahid's awkward coalition cabinet, which is struggling to solve Indonesia's myriad problems.

Mr Gunawan said his resignation was intended merely to stop other politicians attacking the President by attacking his allies. He insisted he had done nothing wrong. "From the attacks on me, I see I was only a secondary target," he said.

The controversy revolves around 35 billion rupiah (HK$35 million) missing from a pension fund for employees of Bulog, a huge body which regulates supplies of key commodities such as rice. The money was allegedly taken by a businessman friend of Mr Wahid, Suwondo – who sometimes acted as his masseur – on the pretext the President needed it. Suwondo later disappeared.

The money vanished when former trade and industry minister Yusuf Kalla still headed Bulog. Mr Kalla was subsequently sacked from both posts. Bulog deputy chief Sapuan has been sacked, declared a suspect and arrested. Analysts believe the money may have been intended for some legitimate cause, such as humanitarian work in Aceh province, but handled badly.

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