Funds leakage probed in Riau Islands

Funds leakage probed in Riau Islands

Haidir Anwar Tanjung, The Jakarta Post, Pekanbaru

Several top officials from the Riau Islands regency
administration, including Regent Huzrin Hood, have been
implicated in the disappearance of Rp 87.2 billion from the
regency's 2001 budget.

The chief of the government prosecutor's office in Pekanbaru,
Moch Huzaini, said that so far seven officials had been
interrogated but none had been held as suspects.

The seven officials were Amin Muchtar, an assistant to the
regent on administrative affairs, administration secretary Andi
Rivai Siregar, Azhar Yunus, Agus Riyanto and Aris Munandar, all
three from the local settlement and infrastructure office,
Amiruddin, secretary of the regency legislature and Mursal
Muchdar, chief of the administration's financial affairs.

Huzaini said Agus Azhar, chief of the local resettlement and
infrastructure office, was interrogated in connection with a
fictitious road repair project worth Rp 7 billion in Singkep
subdistrict.

Riyanto and Munandar, who are known to be close to Hood, were
investigated because both were directly involved in the
fictitious project.

Huzaini said further that his office's investigation would
focus on the regional administration secretary and Hood himself,
because all expenditure and income were paid and received with
the knowledge of the two officials.

He said he could say nothing about the investigation because
it has yet to be completed.

He vowed to be transparent and objective in carrying out the
investigation.

The scandal was raised when the Supreme Audit Agency (BPK)
presented its audit of the administration two months ago. The
regent has rejected several invitations by the legislative
council to discuss the BPK's findings.

The funds were allegedly used by the regent to seek political
support from the local people and the House of Representatives to
develop the Riau archipelago, including Batam and Natuna, and to
separate from Riau to form a new province.

The central government has decided to postpone the proposed
formation of the new province following objections from the
Natuna and the Riau provincial administration.

Mursal Muchdar conceded that he had been interrogated in
connection with the alleged corruption but declined to give
further elaboration.

"I'm sorry, I can't give comment now," he said.