KUD, NGOs accused of alleged Rp 450b fraud

KUD, NGOs accused of alleged Rp 450b fraud

MAKASSAR, South Sulawesi (JP): The South Sulawesi Provincial
Prosecutor's Office has vowed to investigate reports of alleged
fraud by the village cooperatives (KUD) and local non-
governmental organizations (NGOs).

The head of the Provincial Prosecutor's Office, Fachry
Nasution, told The Jakarta Post on Thursday that Rp 450 billion
in funds from the International Monetary Fund (IMF) for farmers'
loan schemes (Kredit Usaha Tani) were allegedly swindled by the
village cooperative and several NGOs.

"I have checked and collected data at all the prosecutor's
offices," he said, referring to the reports by the Provincial
Legislative Council and student groups.

Fachry made the statements amid a demonstration staged by the
Alliance of Students, Youths and People (Ampera) at his
office on Thursday.

Adi Ahsan, the spokesman for the demonstrators, said he and
his colleagues were curious about what actions were taken by the
Provincial Prosecutor's Office from the reports of alleged fraud.

"We are here to demand prompt and proper action on the fraud
of the KUD funds masterminded by several NGOs," Adi said. "We are
surprised to learn that the NGOs, which have been very vocal to
advocate people's rights, have cheated the people."

"The fraud has both affected the villagers and the state as
the money came from IMF loans," he said.

Ampera disclosed its findings that some NGOs, including
Lembaga Mitra Lingkungan in Barru and Wajo districts, Insan Cita
in Gowa and Peduli Lingkungan, have produced fictitious reports
on the money designated for local farmers, Adi said.

The local village cooperative was authorized to help
distribute the money to the farmers during the 1999-2000 planting
season.

Asmin Amin, chairman of Information and Communication Forum
(Forum Informasi Komunikasi) said not all NGOs in the province
were corrupt. "Legal evidence is needed," he said, denying that
his organization was involved in the alleged fraud. (27/sur)