Thu, 15 Apr 1999

Health official denies graft

MAUMERE, East Nusa Tenggara: The head of local the health office, Pangkrasio Iskandar, denied on Wednesday allegations that he had skimmed Rp 420 million (US$48,000) off Rp 65 billion in foreign aid for the regency's social safety net program.

But Pangkrasio acknowledged that he was questioned by Regent Gaspar Parang Ehok, chief of local prosecutor's office Soeprapto and regional inspector general Nico Beda over the alleged scandal.

"It's just a groundless rumor. I have told everything to the regent about the allegation, which lacks evidence," Pangkrasio said.

A source told The Jakarta Post that Pangkrasio allegedly deposited the money in his personal accounts at BRI and BNI state banks. The source also suspected that Pangkrasio used some of the money to build a luxurious house.

"That's not true," he retorted. "I deposited funds in the state banks upon request of chiefs of subdistricts which were selected as recipients of the fund."

As for his luxurious house, he said he used money he had saved over 10 years to pay for the construction.

Despite Pangkrasio's defense, the prosecutor's office head Soeprapto said he would investigate the case. (yac)