Charity organization ACT has lost its operational permit as it continues to be walloped with numerous corruption allegations.
Today, interim Social Affairs Minister Muhadjir Effendi, who is also coordinating human development and culture minister, announced that he has revoked ACT’s Money and Goods Collection Permit amid the scandal.
“The reason for the revocation is there is an indication of a breach towards a Social Affairs Ministry Regulation,” Muhadjir said.
The minister was referring to a rule that states charity organizations may only use up to 10 percent of donated funds for operational purposes. ACT, by its own admission, took 13.7 percent.
ACT is in the national spotlight after Tempo magazine published a report pinning its executives for misappropriation of funds, including by rewarding themselves with exorbitant salaries and numerous perks from the job.
Tempo reported that Ahyudin, who chaired ACT until January 2022, took home a salary of IDR250 million (US$16,664) per month and had bought several cars, including a luxurious Toyota Alphard, using the organization’s funds for his official use.
Tempo’s report unearthed more shadiness within ACT, with the Center for Financial Transaction Reporting and Analysis (PPATK) announcing that it suspects the organization may have been funding terrorist groups.
The same report says that ACT received IDR135 billion (US$8.9 million) in compensation money from Boeing for families of victims of the 2018 Lion Air crash, having been entrusted to build 91 schools in their name. Some IDR56 billion (US$3.7 million) of the fund had gone unaccounted for, with ACT executives claiming that it had been redirected towards other programs. Construction of some of the schools have stalled.
Muhadjir said the government will also carry out audits of other charity organizations in light of ACT’s scandal.
ACT, which is among the most prominent aid givers especially in times of disasters in the country, is reportedly the largest charity organization in Indonesia, collecting IDR500 billion (US$33.3 million) in public donations from 2018 to 2022. The figure dwarfs those of other prominent organizations like Dompet Dhuafa and Rumah Zakat, which collected IDR375 billion (US$25 million) and IDR224 billion (US$14.9 million) during the same period, respectively.
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