Disbursement of aid for community projects postponed

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.

Share

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)