Ministry admits leakages in Rp 1t projects
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)