Cooperatives, NGOs owe Rp 274b

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)