Compensation fund risks corruption in Cirebon

Compensation fund risks corruption in Cirebon

Nana Rukmana, The Jakarta Post, Cirebon

Relief to the tune of almost Rp 1.5 billion to counter soaring
fuel costs triggered by a reduction in government subsidies will
be allocated this year to the West Java city of Cirebon.

The specter of corruption there looms large, however, with
local authorities saying they are even confused as to how the
money would be distributed.

The officials admitted that they have no statistics on the
number of people eligible to receive the money. Apart from that,
it was far from clear who would supervise the actual distribution
of the funds, totaling Rp 1.487,460,000.

"Until now, we don't have data on the population of poor for
whom this money is intended," said Nina Sekartina, president of
the Gunung Jati General Hospital, which has been appointed to
manage the money.

Nor has management set criteria by which the needy could
qualify, she said. But, "we are working on the data in
coordination with the local administration," she added.

The central government is allocating Rp 2.8 trillion in
compensation to the poor in all provinces this year, after it
opted to reduce the fuel subsidies, thereby raising prices.

The money, aimed at developing national health and social
programs for the poor, is planned to be channeled through
ministries and other state agencies.

Critics and non-governmental organizations alike have warned
that such huge sums could easily be misused or siphoned off by
corrupt officials and other individuals in the absence of proper
delivery and supervision.

Suryana, chairman of the city's legislative body, cautioned
that the lack of an exact supervision mechanism over the fund's
distribution exposes it to possible exploitation by corrupt
individuals.

"We are worried about new acts of corruption and nepotism in
relation to the funds. Usually, a weak system of supervision
brings about such practices," he said.

Suryana said the local legislature will hold a hearing with
officials at the Gunung Jati hospital fund management in an
effort to bring order to the process.

"We will ask the hospital leaders whether they are ready to
take responsibility for use of the fund. If not, we will take
firm action," he said.

"It is the people's money."

Nina added that the fund is expected to finance health
services of 3,556 poor patients this year.