Govt to follow up Worl Bank report on corruption

JAKARTA (JP): The government is to investigate the alleged massive corruption of World Bank loans, it was announced yesterday.

Coordinating Minister for Development Supervision/State Administrative Reform Hartarto Sastrosoenarto said he would soon meet with relevant parties to follow up a World Bank report on corruption which he received a few days ago.

"This is still a preliminary study, giving only indications. However, we have to welcome it positively. And we will have a meeting tomorrow (today) to discuss the report," Hartarto told journalists before a cabinet meeting.

Those expected to attend include the finance minister, the central bank governor, the attorney general, the National Police chief and the justice minister.

The Asian Wall Street Journal reported last week that a World Bank internal memorandum stated Indonesian government officials in Jakarta were believed to have siphoned off more than 20 percent of the bank's money earmarked for development projects.

The paper quoted the report as saying that much of the corruption involved state contracts with firms owned or controlled by government officials and their relatives.

The report found the worst embezzlement -- 25 percent or more -- in the ministries of home affairs, transmigration and forestry, the paper said.

Following the publication of the report, many people, particularly legislators and government critics, asked the government to investigate the alleged corruption.

Hartarto said he would cross-check the report with the results of audits by the Development Finance Comptroller (BPKP) on World Bank-funded projects.

"Usually each project is audited by BPKP. Every year, BPKP makes a report. This BPKP report usually covers suggestions to each project leader, ministers, governors or other institutions. It also covers findings on corruption. And this goes directly to the Attorney General's Office," he said.

World Bank loans have mostly been channeled to infrastructure projects, covering the ministries of public works, agriculture, forestry and plantations, and transmigration, he said.

Hartarto promised the government would take action against anyone who had used World Bank loans improperly.

He also promised to investigate alleged leakages of other official foreign loans.

"We will announce steps (to eradicate) KKN on Monday because it is truly important to disseminate the results of our investigations into KKN at the national level," Hartarto said.

KKN is the Indonesian abbreviation for corruption, collusion and nepotism. (prb/rid)