Ministry admits leakages in Rp 1t projects

JAKARTA (JP): The Ministry of Manpower has admitted leakages and irregularities in the labor-intensive projects worth Rp 1 trillion intended for the unemployed and laid-off workers.

Director General for Labor Placement Din Syamsuddin, who is in charge of the projects, revealed that the irregularities were found in the recruitment of participants and in implementation by non-governmental organizations (NGOs) and cooperatives.

"We admit many irregularities and leakages have been found in use of the project funds and project implementation," he said in a press conference here on Thursday.

He also said that officials and NGOs proved to have embezzled project funds will be taken to court.

The Ministry has spent Rp 600 billion to finance labor- intensive projects for the unskilled unemployed and laid-off workers (known as the PDKMK program) in the provinces.

According to Din some 16 million are now unemployed, while the Federation of All Indonesian Workers Union has estimated 24 million Indonesians are now without jobs.

The projects, which are carried out by provincial manpower ministry offices, comprise irrigation and road repairs, new road works and construction projects. Under this program, the ministry has employed around 2.5 million workers who are each paid around Rp 5,000 a day.

The ministry has also spent Rp 400 billion on labor-intensive projects for skilled workers. Under this scheme, 69,000 skilled workers, who are each paid around Rp 300,000 per month, are trained in companies in the hope they might become entrepreneurs. This program is carried out by non-governmental organizations and cooperatives.

Din said he hoped there would be continued funds for the skilled workers program, because this has greatly helped to ease the impact of dismissals on many professionals.

The government has come in for fierce criticisms, both at home and overseas, over irregularities in the social safety net program aimed for those hardest hit by the prolonged crisis.

Funds for the labor-intensive projects form part of loans worth Rp 17.9 trillion for the social safety net program in the 1998-1999 fiscal year.

Din said that in many cases, a large number of program participants were not dismissed workers but youths, students and relatives of those in charge of the projects.

"Besides, there have been NGOs reported to have carried out bogus projects," he added.

Din declined to reveal the amount of leakages in the projects, only insisting they were still better managed than safety net programs in other ministries.

He said that the Ministry of Manpower would evaluate the projects with all heads of provincial offices on Monday.

Asked about the alleged collusion in the skilled workers' projects worth Rp 4.7 billion in Deli Serdang, North Sumatra, Din said he supported an investigation into the case.

The Medan-based Sinar Indonesia Baru daily reported Tuesday that the Deli Serdang prosecutor's office is still investigating alleged corruption in the project carried out by a local NGO.

Din added some good news: the Ministry was to hold a three-day exhibition next week to expose numerous products manufactured under social safety net programs by several workers who have succeeded in becoming new entrepreneurs.

"Local businessmen and foreign trade attaches in the capital are expected to attend the manpower ministry's Expo 99 and to develop an interest in the products," he said. Products would include footballs, farming technology and garments. (rms)