Tue, 15 Feb 2000

Pressure mounts on fraud probe

MAKASSAR, South Sulawesi: The Makassar Legislative Watch urged that the provincial legislative council on Monday have the embezzlement of loans for farmers (KUT) legally settled.

Farid Ma'ruf Ibrahim, secretary of the legislative watch, said the embezzlement, allegedly committed by local cooperatives and non-governmental organizations (NGOs), needed to be resolved soon.

"The unresolved case affects four million farmers. Don't let them be exploited by cooperatives and NGOs," he said.

The South Sulawesi Provincial Prosecutor's Office earlier promised to investigate the alleged swindle of Rp 450 billion in loans provided by the International Monetary Fund (IMF) for farmers' assistance.

Some NGOs, including Lembaga Mitra Lingkungan in Barru and Wajo districts, Insan Cita in Gowa and Peduli Lingkungan, have been accused of presenting fictitious reports on the money designated for local farmers.

Reports on the swindle apparently persuaded Minister of Agriculture, M. Prakosa, plan to exclude NGOs from participating in the disbursement of credits for farmers.

According to the legislative watch, the settlement of the swindle case must be given priority for the sake of the farmers. (27/sur)