Group says graft probe needs free commission

JAKARTA (JP): Economists and government critics are banding together to advocate establishment of an independent commission to probe bureaucratic corruption, including allegations which surfaced recently involving World Bank loans.

"We demand the government establish a national independent commission, such as the National Commission on Human Rights, to probe corruption cases," the group said in a statement sent to The Jakarta Post yesterday.

Signatories included government critics Ali Sadikin, Heri Akhmadi and Mudji Sutrisno, plus noted economists Rizal Ramli, Anggito Abimanyu and Arif Arryman.

The group said the commission should replace the government- appointed team -- headed by the coordinating minister for development supervision and state administrative reforms -- to ensure full objectivity.

"There were many instances during (former president) Soeharto's era where probes into corruption cases were carried out with no results. It is so naive to expect an internal team to investigate corruption cases in a transparent and objective way," the group said.

The Asian Wall Street Journal, quoting a World Bank internal memorandum, reported last week that officials in Jakarta were believed to have siphoned off more than 20 percent of the bank's money to the country.

The bank's country director for Indonesia, Dennis de Tray, did not deny the problem of corruption in the nation, but said the reported figure was too high.

World Bank East Asia and Pacific Director Jean-Michel Severino subsequently acknowledged the 20 percent figure was cited in a 1997 internal report.

"This number was mentioned in the report because it was suggested that corruption was substantial," Severino said.

The international lender has committed about US$23.4 billion to Indonesia since 1967.

The group said yesterday the 20 percent figure was extremely conservative, contending the actual rate of corruption was likely about 30 percent.

"Similar corruption cases and graft are also believed to occur in projects funded by the Asian Development Bank and other donors grouped in the Consultative Group on Indonesia."

The group believed the World Bank was aware of the graft but chose to turn a blind eye for several reasons, including the fact Indonesia had diligently repaid its debt on time for 32 years.

"The bank cares more about Indonesia's creditworthiness than the corruption of its funds," the group said.

It added that institution was probably also concerned that a tough stance against Indonesia, one of the world's largest borrowers, would taint its image in other developing nations.

Relations between World Bank and Indonesian officials are close and often personal, the group said, arguing this familiarity made it difficult for the former to be objective in evaluating the situation.

"The World Bank must also be responsible morally and professionally for corruption in Indonesia," the group said.

It also demanded the bank should be transparent in revealing methods of corruption allegedly used by officials of the bank and bureaucracy.

The group claimed the bank is good at project planning but weak at financial monitoring and tracking the audit trail. It required the bank to improve its monitoring and audit system in the project implementation phase.

More frequent rotation of officials between World Bank officies would prevent the fostering of overly personal relations between them and local officials, the group added. (jsk)