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Financial watchdog freezes humanitarian NGO ACT accounts
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Financial Transaction Report and Analysis Center (PPATK) head Ivan Yustiavandana attends a session with lawmakers at the House of Representatives on Jan. 31. (Antara/Galih Pradipta)
T
he Financial Transaction Report and Analysis Center (PPATK) froze on Wednesday 60 accounts affiliated with humanitarian NGO Aksi Cepat Tanggap (ACT) at 33 financial service institutions.
PPATK chief Ivan Yustiavandana said the move was based on an analysis the watchdog started in 2018, which discovered transactions worth Rp 30 billion (US$1.9 million) made between ACT and a company owned by one of the foundation's founders.
PPTAK also found indications that ACT had failed to allocate donations made by the public, allegedly using them for commercial purposes instead.
“So, [ACT] did not distribute [all] the funds as designated, but managed them first with profit involved,” Ivan said as quoted by Kompas.
In its July 2 edition, Tempo magazine reported allegations that ACT had embezzled funds it received from the public, including using them to provide luxury cars for its top officers and extravagant operating expenses.
Ibnu Hajar, ACT president, confirmed that ACT executives received monthly salaries upward of Rp 250 million starting early 2021, but they were later lowered following a drop in donations received in September 2021.
The institution also admitted to taking a 13.7 percent cut from the donations it received each year to use for its operations, including paying employees' salaries.
