Irna Gustia/Swastika & LM, Jakarta – A Supreme Audit Agency (BPK) investigation into a foundation owned by the Army Strategic Reserves Command (Kostrad) has uncovered corruption to the value of Rp 70 billion (US$ 8.4 million). The BPK has promised to complete their investigation next week.

Head of the BPK investigation team into Kostrad Foundation I, Gede Arcana, told reporters at his office on Gatot Subroto St., South Jakarta Friday that the Rp 70 billion corruption case involves several Army Generals.

Amongst the leaders mentioned was former Kostrad Commander Djaja Suparman who reportedly channeled funds into Mandala Airlines where he serves as commissariat. Suparman has also been mentioned in investigations into a counterfeiting ring linked to the funding of the pro-integration militia in East Timor where Kostrad was one of the most active army units.

This amount is far less than the Rp 135 billion (US$ 16.23 million) reported in Tempo magazine. In their report, Tempo mentioned several former high-ranking Kostrad officers suspected in the manipulation of the foundations' funds.

"The findings on the Kostrad fund irregularities was not worth Rp 135 billion but Rp 70 billion instead," Gede was quoted saying. This reduction was due to the fact that the BPK audit team noted several fund transfers back into foundation's principle fund.

Gede further admitted that the Rp 70 billion was used by former Kostrad leaders for commando and other field operations without elaborating on the particulars. "Mark-ups and misuse were carried out to fund the operations," he said.

He added that next week the BPK will make two recommendations for managing Kostrad funds so that the organisation will have a more organised administration mechanism. "So there will be no more fund misusage by top leaders who have extensive authority," Gede reiterated.

As may be expected, further legal or disciplinary actions will not be the responsibility of the Audit Agency. They will be listed as persons who have conducted misdemeanors and the list will be submitted to the Armed Forces Central Command (Puspom), said Gede.

Commenting on the foundation's principal fund, Gede said that all Kostrad leaders were required to contribute a certain amount of their wages to the collective fund.