City sanitation agency says fee system effective

JAKARTA (JP): Head of the City Sanitation Agency M. Subasir said here yesterday that the current system of garbage fee collection is appropriate and effective.

He dismissed the City Council's proposal to review the system because it could be made more effective.

According to the current system, neighborhood chiefs collect monthly garbage removal fees from area residents. The money is then transferred to subdistrict heads, who deduct 10 percent for the use of area community and neighborhood units and his office, before turning in the remaining 90 percent to the sanitation agency.

A municipal regulation says owners of buildings or houses on a main street are obliged to pay monthly sanitation fees of Rp 10,000 each. Owners of houses located in areas classified as first class must pay Rp 7,500, while those living in areas categorized as second class must pay Rp 3,000.

According to Gubernatorial Decree No. 570/1990, the subdistrict heads must set aside 10 percent of the total, three percent of which goes to the subdistrict office, with six percent going to area neighborhood units and one percent to community units.

"The system has proven effective and efficient," Subasir said.

Banking service

Councilor Helmy A.R. Syihab recently proposed that the sanitation agency use banking services. He suggested that all of the money collected be sent to the bank, with the agency itself distributing the 10 percent to subdistrict heads, community and neighborhood chiefs through the banking system.

Subasir said the proposal is too complicated and time consuming.

Concern exits that subdistrict heads may be mishandling the funds because neighborhood and community chiefs have complained they have not received the proper percentage.

"I know nothing of reports that the funds have been mishandled. My office has detailed records of the flow of money from garbage collection," he said. "Please report any proven corruption to me. I have evidences that my office has distributed the percentages properly," he said.

Helmy, head of the City Council's Commission C for financial affairs, complained that the current system provokes corruption.

"Many neighborhood and community unit chiefs have not received the percentages due to them from last year," he said.

He defended his proposal, saying that banking services would be safer. "The community and neighborhood chiefs would simply open bank accounts into which the proper percentages could be deposited."

Hasanuddin, head of the logistics department of the agency, said yesterday that the agency had paid out a total of Rp 136 million (US$61,818) in percentages from June to December 1994.

"We have disbursed last year's percentages to every subdistrict in the city."

He explained that late payment was more likely caused by administrative factors, instead of corruption. (yns)