Probe into book procurement suggested

Sari P. Setiogi, The Jakarta Post, Jakarta

Police should follow up reports of US$ 10 million worth of corruption in relation to a World Bank-financed textbook procurement project, a non-governmental organization said on Tuesday.

The People's Coalition to Promote Good Governance chairman T.M. Mangunsong said police should investigate the allegations.

"If the allegations have substance, we urge further action," Mangunsong said.

The World Bank announced in Washington last week there was evidence Indonesian publishers and individuals had stolen some US$10 million from a book procurement project for junior secondary schools and urged the Indonesian government to return the sum.

The Book and Reading Development Project was funded with loans worth $132.5 million from the World Bank's International Bank of Reconstruction and Development (IBRD).

Instead of transparency there was collusion among publishers to win the project, acting World Bank country director Joel Hellman, told The Jakarta Post.

He said the result of the investigation, which suggested that some publishers misused funds worth $10 million, had been sent to the government and the powerful Corruption Eradication Commission (KPK).

As many as 26 private and state publishers and 10 individuals have been black-listed from any new World Bank-financed contracts.

Due to the scandal, the four-year project was terminated in December 2001, having disbursed only $53.2 million of the loan.

"We believe the education sector is very important and the World Bank remains engaged in this sector through the Ministry of National Education," Hellman said when asked about the possibility of resuming the textbook procurement project.

"(However), at the same time we have to ensure that resources borrowed from us are used for their intended purpose," he said.

To prevent any graft in future World Bank projects, the World Bank and the Ministry of National Education had agreed on a set of action plans.

"It is important for us and the government to ... ensure ongoing and future projects are implemented with stronger controls and greater accountability," Hellman said.

Top officials at the Ministry of National Education refused to comment about the scandal on Tuesday.