Councillors urge rice fund embezzlement inquiry

Apriadi Gunawan The Jakarta Post Medan, North Sumatra

North Sumatra legislative councillors have urged law enforcers to investigate the alleged embezzlement of Rp 2.037 billion from the sale of rice-for-the-poor to the public at traditional markets in the province.

Erwan Parlinda, chairman of the council's commission on social affairs, said on Wednesday the North Sumatra Police should form a team to promptly handle the case and guarantee the smooth distribution of cheap rice to the poor.

Any delay in unveiling the whereabouts of the money will give certain regional officials more opportunity to sell the rice in traditional markets, according to Abdi Nusa Tarigan, another member of the legislature.

"Rice for poor people, which should be sold for Rp 1,000 per kilogram by regional logistics agencies (Dolog), is being sold in traditional markets for Rp 2,800. This must be the act of local mafias," Abdi Nusa Tarigan told The Jakarta Post.

The deputy chief of the local office of the State Logistics Agency (Bulog), Rama Tedjakusuma, denied the presence of mafias and officials selling the rice in traditional markets because any release from Dolog warehouses had to be based on a delivery order issued by the relevant regent or mayor.

Rama said the money had not been misused, but regency and city administrations throughout North Sumatra had been late in paying for the rice, with three regencies recording the largest arrears in January 2003 -- namely Deli Serdang Rp 545.882 million, Langkat Rp 526.358 million and Toba Samosir Rp 360.54 million.

"These provinces payment delays for cheap rice are the biggest in the country," Tedjakusuma said.

Abdi Nusa Tarigan pointed out that the large arrears just indicated the extent of embezzlement of the people's money by officials.

"The regencies and cities should have transferred the money from the poor as soon as they received it," he remarked.