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Potential fraud of $6.3m in education projects

| Source: JP

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.

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