ADB to help government set project cost benchmarks<\/p>\n
JAKARTA (JP): As part of efforts to curb rampant corruption in
\nthe country, the Asian Development Bank (ADB) will assist the
\ngovernment in designing a benchmark for procurement prices of
\ngovernment programs, said a senior ADB official.<\/p>\n
ADB programs department director Shoji Nishimoto said on
\nThursday the benchmark would minimize the risk of corruption in
\ngovernment-financed projects.<\/p>\n
"This will significantly reduce funds from being
\nmisappropriated," he told a news conference, following a workshop
\non good governance and anticorruption efforts jointly organized
\nby the government and the bank.<\/p>\n
The workshop was also attended by World Bank officials.<\/p>\n
Shoji said either the Ministry of Finance or the National
\nDevelopment Planning Board (Bappenas) would coordinate with ADB
\nin designing the project procurement benchmark.<\/p>\n
"With this, there will be a certain benchmark for developing a
\none-kilometer road," he said.<\/p>\n
He said that in the past, government-sponsored projects were
\neasily marked up because of there was no such system in place.<\/p>\n
Shoji said the bank would also demand the government disclose
\nthe criteria for the project bidding.<\/p>\n
He declined to indicate the magnitude of ADB funds
\nmisappropriated in the country, saying "you can judge by
\nyourself".<\/p>\n
Local economists have indicated some 30 percent leakage in
\ngovernment funds.<\/p>\n
An internal World Bank report leaked to the media a few months
\nago pointed out that some 20 percent of WB funds in Indonesia had
\nbeen misappropriated.<\/p>\n
When asked to comment on the World Bank figure, Shoji said:
\n"We shouldn't be too different, because we're swimming in the
\nsame ocean."<\/p>\n
The government, under fire over rampant corruption in the
\ncountry, recently issued an announcement on the amount of
\ncorruption in each of the ministries. The disclosure received a
\ncool response from the public, as the government failed to
\ndisclose the names responsible for the corruption or to pursue
\nlegal measures.<\/p>\n
Critics said the move was a political maneuver by incumbent
\nPresident B.J. Habibie in the run-up to the presidential
\nelection.<\/p>\n
Habibie has yet to prove his seriousness in investigating
\nallegations his former mentor president Soeharto corruptly
\namassed some US$15 billion during his 32-year rule.<\/p>\n
The ADB announced on Thursday a 20-point anticorruption action
\nplan to be implemented by the government within a three-year
\nperiod.<\/p>\n
The bank said it was considering new loans for the country to
\nhelp finance efforts to create a market-based and competitive
\ntrade and industry regime.<\/p>\n
ADB said it would provide technical assistance to boost the
\ncapability of state audit agencies.<\/p>\n
A possibility of introducing an external audit on government-
\nfinance projects is also being considered.<\/p>\n
The action plan also includes organizing seminars for various
\naudiences, but has no details relating to prosecution of corrupt
\nindividuals. (rei)<\/p>",
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