Government revokes ACT’s charitable collection permit amid corruption scandal

The charitable organization ACT has lost its operating permit as it remains mired in numerous corruption allegations.

Today, interim Social Affairs Minister Muhajir Effendi, who is also coordinating the Minister of Human Development and Culture, announced that he has revoked the permit to collect funds and goods for ACT amid the scandal.

Mohajer said, “The reason for the cancellation is that there is an indication of violating the regulations of the Ministry of Social Affairs.”

The minister was referring to a rule that charities may use only up to 10 percent of donated funds for operational purposes. ACT, by its own admission, scored 13.7 percent.

ACT in the national spotlight after Speed The magazine published a report condemning its executives to embezzlement of funds, including rewarding themselves with exorbitant salaries and many perks from the job.

Speed It reported that Ahidin, who headed the ACT until January 2022, earned a salary of IDR 250 million (US$16,664) per month and purchased several cars, including a luxury Toyota Alphard, using the organization’s funds for his official use.

SpeedThe report revealed more shadow within the ACT, with the Financial Transaction Reporting and Analysis Center (PPATK) announcing that the suspects The organization may have been funding terrorist groups.

The same report says that ACT received 135 billion Indonesian rupiah (US$8.9 million) in compensation from Boeing for the families of the victims of the 2018 Lion Air crash, for which it was commissioned to build 91 schools in its name. some 56 billion Indonesian rupiah (US$3.7 million) Out of the fund went unaccounted for, as ACT executives claimed it had been redirected toward other programs. Some schools stopped.

Mohajer said the government will also conduct audits of other charities in light of the ACT scandal.

ACT, which is among the most prominent providers of aid especially in times of disaster in the country, is the largest charitable organization in Indonesia, raising IDR 500 billion (US$33.3 million) in public donations from 2018 to 2022. Notable organizations such as Dompet Dhuafa and Rumah Zakat collected Zakat IDR 375 billion (US$ 25 million) and IDR 224 billion (US$ 14.9 million) during the same period respectively.

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