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)