Thu, 14 Nov 2002

Potential fraud of $6.3m in education projects

Debbie A. Lubis, The Jakarta Post, Jakarta

Potential fraud totaling Rp 57.4 billion (US$6.3 million) has been uncovered at the Ministry of National Education but those implicated have only been sent warning letters.

Minister of National Education Malik Fajar told the House of Representatives Commission VI on human resources and religious affairs on Wednesday that the Supreme Audit Agency (BPK) had discovered 75 cases of alleged misuse of state funds.

The irregularities occurred at institutions ranging from leading state universities to basic child development projects in impoverished Indonesian provinces.

Malik said his ministry had taken some follow-up measures against those responsible, including issuing warning letters to project heads.

He did not say if police had been asked to investigate any of the cases.

Legislators in the commission, however, demanded the minister take firm action over the alleged misuse of public funds and strengthen its control mechanisms.

"Irregularities, no matter how little they are, must not be tolerated, especially in education institutions. The minister should be strict; he must remove director generals who cannot perform their duties," legislator Abduh Paddare said.

Malik said five state universities, supposedly centers for excellence, had misused a total of Rp 12.5 billion (US$1.38) in the first semester of 2002 alone.

He named the institutions as: Padjadjaran University in Bandung, West Java, Diponegoro University in Semarang, Central Java, Brawijaya University in Malang, East Java, Airlangga University in Surabaya, East Java and Bengkulu University in Bengkulu, South Sumatra.

BPK found irregularities in areas including the procurement process, fringe benefits accorded to lecturers and excessive expenditure for building maintenance.

"The findings do not necessarily mean that the irregularities mean corruption. Some of them are merely caused by unclear rulings. Bear in mind that the irregularities are based on the norms set out by the BPK," Malik said.

State universities are overseen by the Directorate General of Higher Education.

In addition to state universities, the minister reported irregularities in other sectors managed by the ministry.

Most of the irregularities outside the universities were found in six projects overseen by the Directorate General for Basic and Secondary Education.

They included the 2001/2002 basic education promotion project, social safety net and school operational expense assistance, junior high school quality improvement and basic education improvement projects in Jakarta, Riau and South Sulawesi.