Government assures WB over its fight against corruption

Government assures WB over its fight against corruption

JAKARTA (JP): The government reiterated to the World Bank
yesterday its commitment to root out corruption, collusion and
nepotistic practices in the country.

"The government will continue to address these problems
through various policy reforms, but it is now time to return to
the broader issue of how to formulate a strategy for creating an
environment in which KKN cannot survive," Coordinating Minister
for Economy, Finance and Industry Ginandjar Kartasasmita said in
a letter dated yesterday to the bank's country director, Dennis
de Tray, which was made available to The Jakarta Post.

KKN is the Indonesian abbreviation for corruption, collusion
and nepotism.

Ginandjar noted in his letter that Coordinating Minister for
Development Supervision and State Administrative Reforms Hartarto
Sastrosoenarto had begun to root out corruption, collusion and
nepotism in the bureaucracy.

"I would be grateful if the World Bank would assist Minister
Hartarto and the government as we are seeking ways of curbing KKN
practices once and for all," Ginandjar said.

Dow Jones quoted a World Bank's official here as confirming
yesterday that De Tray would return to the bank's headquarters in
Washington next January.

Bondan Winarno, external affairs consultant at the World Bank
in Jakarta, said the post of Indonesian director is now being
advertised.

He said De Tray would take up a senior position in Washington.

De Tray rejected this week the allegations that some 20
percent of money earmarked for bank projects in the country had
been siphoned off fraudulently, although he said corruption was a
problem.

The Asian Wall Street Journal, citing a World Bank internal
memorandum, said Monday that Indonesian officials were believed
to have taken more than 20 percent of project money.

De Tray said the extent of the corruption had never been
quantified, although he did not deny there were problems of
corruption.

Present in Indonesia since 1966, the World Bank has been
sharply criticized for not blowing the whistle on the country's
economic mismanagement and frail banking system before they were
highlighted in the crisis that broke with Thailand's July 1997
devaluation of the baht. (jsk)