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)