Graft mars World Bank program

The Jakarta Post, Jakarta

A project manager in a World Bank-funded program in the Central Sulawesi regency, Donggala, identified only by the intial of ZC, has been named a suspect in a Rp 700 million graft allegation.

Iskandar Sukirman, head of the Donggala prosecutor's office, said on Sunday that ZC was named a suspect after he allegedly embezzled funds allocated to needy people or institutions in several districts in Donggala.

The state funds, in the form of loans provided by the World Bank, amounted to Rp 3 billion (US$375,000), managed under the World Bank's District Development Program (PPK).

"The funds should have been distributed to people or institutions in several districts. He reported to the World Bank and the government that all had received the funds, but when the report was checked, only some of the funds had actually been distributed in 2002," said Sukirman, as quoted by Antara news agency.

The suspect has allegedly embezzled Rp 700 million of a total Rp 3 billion.

Sukirman said that the suspect would be tried as soon as his indictment was completed.

The World Bank channeled grants to the government amounting to Rp 22 billion in 2002 to support its PPK in 25 districts of seven regencies in Central Sulawesi.

The grant was to provide soft loans to small and medium enterprises, funding for infrastructure development and scholarships for school dropouts.

The World Bank studied and appointed "trusted people" in the respective regions to channel the grants, as part of civil society strengthening. In most cases, the strategy was well executed but in some instances was disappointing, as was proven in the case of ZC.

The graft case was the second to have rocked Donggala this year. Last month, a local Donggala administration official was named a suspect over embezzlement in the monthly payment of doctors and nurses in the regency, totaling Rp 300 million.