Cooperatives, NGOs owe Rp 274b

SEMARANG: A total of 566 cooperatives and nongovernmental organizations (NGOs) in Central Java have failed to return Rp 274 billion of farming cooperative funds (KUT) they received in the 1998-1999 fiscal year, a councilor said on Wednesday.

Provincial legislature member Sutoyo said the cooperatives, from 32 regencies, accounted for Rp 241 billion of the unpaid debts.

Sutoyo said misuse of the funds was mostly blamed for the unpaid debts, as was the complicated bureaucratic procedures.

"Many people used the funds to buy motorbikes, which is not related to farming activities. Many also put the money in the bank to gain interest," Sutoyo said. (har/edt)