Disbursement of aid for community projects postponed

JAKARTA (JP): The city administration has postponed disbursement of Rp 109.52 billion (US$14.6 million) in World Bank aid allocated for community development due to discrepancies in its proposed usage, an official said on Thursday.

Head of the city development planning board Bambang Sungkono said that as many proposals made by executives of the Village Resilience Board (LKMD) in charge of channeling the aid were considered to have no connection with the spirit in which the aid has been provided, its disbursement was being postponed until Jan. 15, two weeks past the original date designated.

Bambang said that even though the allocation was aimed mainly at empowering the community economically, some executives of the board had proposed to use the aid money to purchase things like motor cars, water treatment machines, hearses, uniforms and computers.

"We cannot approve such proposals as they are way outside the objectives set for the use of the aid," he said.

Bambang said these misapprehensions arose possibly because the executives were confused and surprised at finding themselves managing such a large amount of money so suddenly. "Therefore, they then are confused in setting priorities as well," he said.

In Central Jakarta the disbursement would symbolically be conducted on Friday.

The aid was originally to be handed over to 265 board branches throughout the city through the National Development Planning Board early this month.

About Rp 106.7 billion of the total would be channeled directly to the branches through state-owned Bank Rakyat Indonesia, while the remaining Rp 2.74 billion would be earmarked for management and operational costs.

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East Jakarta would receive the biggest share of the funds at Rp 34.18 billion because the greatest number of the needy was to be found there, followed by West Jakarta with Rp 23.64 billion.

South Jakarta will receive the third largest share, Rp 19.47 billion, while North and Central Jakarta will receive Rp 14.93 billion and Rp 14.55 billion respectively.

Bambang said the funds should especially be used for helping small scale entrepreneurs and community projects which could empower the needy.

He also said that in setting out the proposals the branches were backed by private consultants appointed by the mayoralties.

Bambang admitted there would be a possibility of embezzlement in the use of the funds. "That's why we strongly urge members of the communities to control fund management tightly. I ask people not to hesitate to report to us if they find any mismanagement.

"Actually, it is a challenge for the branches whether they are able to manage the funds."

However, Bambang said he did not have great hope that the program would be 100 percent successful. "Just 50 percent would be good enough," he insisted.

A member of the City Council's Commission E for social welfare affairs, Nitra Arsyad, said that discrepancies in the proposals showed that the consultants had not worked professionally.

"There should be technical assistance in arranging the proposals so that the spirit of enhancing the community's economic power is prioritized." (ind)