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.