Fri, 24 Jul 1998

Corruption puts an end to new schools

BANDUNG, West Java: Japan's Overseas Economic Cooperation Fund (OECF) has decided to stop financial assistance it was providing to the West Java office of the education and culture ministry because the funds have been misused, Antara reported yesterday.

The OECF has stopped its Rp 30 billion assistance program for building 30 secondary schools across the province after irregularities in the use of the funds were discovered, head of the provincial education and culture office Thamrin Gunardi told provincial legislators on Wednesday.

Gunardi said the OECF assistance was divided into eight packages, seven of which had already been received.

Funds worth Rp 3.3 billion have allegedly been embezzled from the first seven packages, he said.

He also noted that RP 923 million of the Rp 4.3 billion eighth package was released but did not reach the appointed contractor.

Gunardi said they suspected the funds were embezzled by the project's chief, identified as Oman Suherman. He has been fired from his post.