The government has revoked the auhorization of Aksi Cepat Tanggap (ACT) to collect funds and goods on the basis that the philanthropic organization has used more funds or goods than allowed for operating purposes.
"Our decision to revoke (the authorization) is due to suspected violations of the Social Affairs Ministry's regulations. We will wait for the investigation report by the Inspectorate General before deciding on the next sanction," ad-interim Social Affairs Minister Muhadjir Effendy, assuming the role of Tri Rismaharini, who departed for Saudi Arabia to perform her Hajj, stated on Tuesday.
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The revocation is authorized by Social Affairs Ministry's Decision No. 133/HUK/2022, dated July 5, 2022, and signed by Effendy.
He pointed out that Article 6, Par. 1 of Government Regulation No. 29 of 1980 allowed organizations collecting funds and goods for philanthropic purposes to utilize only up to 10 percent of the funds and goods collected for operational purposes.
In addition, the operational funds should not be drawn from funds and goods collection intended for disaster relief purposes, he added.
Meanwhile, President Director of ACT Ibnu Khajar remarked that the organization, on average, used up to 13.7 percent of the funds collected from residents for operational purposes, which surpassed the 10-percent limit designated by the regulation, the minister stated.
Effendy reiterated the government's commitment to be responsive to the residents' concerns and vouched to re-examine other authorizations given to philanthropic organizations as well as take necessary measures to prevent misappropriation of the residents' funds in philanthropic organizations.
Earlier, the Social Affairs Ministry summoned executives of ACT, including Khajar and organization directors, to clarify about its activities with regard to information circulating on it in public.
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