Wed, 12 Oct 2005

Mayor stops disbursement of cash aid

Oyos Saroso H.N and Jemris Fointuna, The Jakarta Post, Bandarlampung/Kupang

Bandarlampung Mayor Eddy Sutrisno ordered on Tuesday that the disbursement of the fuel compensation fund be stopped temporarily on the back of widespread graft.

Eddy said the disbursement had missed the target with many wealthy people, instead of the underprivileged, receiving the compensation fund. In addition, several government officials were also found to have imposed illegal fees on people eligible to receive the aid, tarnishing the municipal government's image. The mayor said he would take stern actions against the government officials involved. "Those subdistrict officials involved will be fired and brought to justice," said Eddy.

After ordering the disbursement efforts be stopped temporarily, Eddy said he had requested the local statistics office to improve the data so that only disadvantaged people received the compensation fund. He also ordered his subordinates to make sure that the money that had been distributed to the wealthy people was given back to the state.

Eddy said the disbursement of the fuel compensation fund would resume next month after correct data was completed by the statistics office.

The disbursement has reached 47 percent out of a total of 52,461 households eligible to receive the compensation fund as of Monday evening. The amount so far distributed was Rp 7.5 billion from a total fund earmarked for the city residents totaling Rp 15.7 billion.

According to an executive of state run PT Pos Indonesia Lampung operations, Jarot Heri Purnomo, the suspension only took place so far in Bandarlampung. Jarot said his company was ready to implement the mayor's order.

"Our company only helps distribute the fund and when the local government orders us to stop the distribution, we have to comply," said Jarot.

Despite the order, many Bandarlampung residents eligible to receive the aid were not aware of the instruction of the Bandarlampung mayor and they packed the PT Pos Indonesia office in the city and other smaller post offices. Local post office officials informed the residents that the disbursement was delayed indefinitely.

The disbursement of the fund is aimed at cushioning the impact of the fuel price hike on Oct. 1. People eligible to receive the fund are those families that earn less than Rp 175,000 a month.

The fund is to be distributed each quarter and each eligible family will receive Rp 300,000 per quarter for a one-year period.

In Kupang, East Nusa Tenggara, the local statistics office acknowledged that inaccurate data was behind the confusion in the disbursement of the fuel compensation fund.

Chief of East Nusa Tenggara statistics office, Poltak Sutrisno Siahaan, said 55,600 wealthy families in 16 regencies and municipalities in the province had been mistakenly listed as poor and had received the fund.

The figure was 10 percent of total residents eligible to receive the fund in East Nusa Tenggara province.

"Those wealthy families have to return the money and if they insist on keeping it, they will be reported to the police," said Poltak.