ADB to help government set project cost benchmarks
ADB to help government set project cost benchmarks
JAKARTA (JP): As part of efforts to curb rampant corruption in
the country, the Asian Development Bank (ADB) will assist the
government in designing a benchmark for procurement prices of
government programs, said a senior ADB official.
ADB programs department director Shoji Nishimoto said on
Thursday the benchmark would minimize the risk of corruption in
government-financed projects.
"This will significantly reduce funds from being
misappropriated," he told a news conference, following a workshop
on good governance and anticorruption efforts jointly organized
by the government and the bank.
The workshop was also attended by World Bank officials.
Shoji said either the Ministry of Finance or the National
Development Planning Board (Bappenas) would coordinate with ADB
in designing the project procurement benchmark.
"With this, there will be a certain benchmark for developing a
one-kilometer road," he said.
He said that in the past, government-sponsored projects were
easily marked up because of there was no such system in place.
Shoji said the bank would also demand the government disclose
the criteria for the project bidding.
He declined to indicate the magnitude of ADB funds
misappropriated in the country, saying "you can judge by
yourself".
Local economists have indicated some 30 percent leakage in
government funds.
An internal World Bank report leaked to the media a few months
ago pointed out that some 20 percent of WB funds in Indonesia had
been misappropriated.
When asked to comment on the World Bank figure, Shoji said:
"We shouldn't be too different, because we're swimming in the
same ocean."
The government, under fire over rampant corruption in the
country, recently issued an announcement on the amount of
corruption in each of the ministries. The disclosure received a
cool response from the public, as the government failed to
disclose the names responsible for the corruption or to pursue
legal measures.
Critics said the move was a political maneuver by incumbent
President B.J. Habibie in the run-up to the presidential
election.
Habibie has yet to prove his seriousness in investigating
allegations his former mentor president Soeharto corruptly
amassed some US$15 billion during his 32-year rule.
The ADB announced on Thursday a 20-point anticorruption action
plan to be implemented by the government within a three-year
period.
The bank said it was considering new loans for the country to
help finance efforts to create a market-based and competitive
trade and industry regime.
ADB said it would provide technical assistance to boost the
capability of state audit agencies.
A possibility of introducing an external audit on government-
finance projects is also being considered.
The action plan also includes organizing seminars for various
audiences, but has no details relating to prosecution of corrupt
individuals. (rei)