Corruption watchdog queries credit fund

Corruption watchdog queries credit fund

TANGERANG (JP): The Tangerang Government Watch (TGW) has urged
the local authorities to reevaluate the credit distribution
system to farmers after 836 farmers did not receive funds.

The non-governmental organization's chairman, Tony Wismantoro,
said on Thursday funds were believed to have been misused by
local entrepreneurs with close relationships to officials in
charge of the credit distribution.

"In Balaraja, Tangerang subdistrict, for example, a well-known
businessman received credit from the scheme worth Rp 2 billion.
It's a wily move because the interest is much lower than the bank
rate, and especially since banks rarely give credit."

Tony did not divulge the name of the businessman.

The chairman of Tangerang Council's commission on economic
affairs, Mochamad Said, agreed with Tony's claim of misuse. He
said the 1999 budget for the credit scheme totaled Rp 14.59
billion but was only disbursed to a minority of farmers. The
cooperatives office controlled disbursement.

A member of the commission, Syis Abdul Gani, said he was told
by executives of the cooperatives office that 30 percent of
farmers who received credit were unable to make payments due to
failed harvests.

"We do not fully believe the report and will conduct an
investigation into it soon," he said. (41/09)