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Relief aid test case in graft fight: Alwi

| Source: REUTERS

Relief aid test case in graft fight: Alwi

Reuters, Banda Aceh

With billions of dollars in reconstruction money set to pour into tsunami-ravaged Aceh province, the government sees disbursement as a test case in its battle to curb endemic corruption.

Chief social welfare minister Alwi Shihab said on Wednesday the government wanted to improve the image of the country, seen as one of the world's most corrupt.

"The government is interested in creating a positive image. So this is a test case for the government," Alwi told Reuters in an interview.

He has been in charge of coordinating relief operations on the ground and has effectively been running the local government in the absence of the province's governor who is in jail in Jakarta on trial over corruption charges.

The Dec. 26 earthquake and massive killer waves have killed more than 105,000 people in Indonesia, most of them in the province on the northern tip of Sumatra island.

Alwi said President Susilo Bambang Yudhoyono had invited non- governmental organizations to take part in the supervision and auditing of the relief money, adding anyone who pocketed funds would be punished.

"He has also warned those who have something in their minds in terms of their usual practices, that they will be severely punished," Alwi said.

Indonesia was ranked the fifth-most corrupt country in the world last year by Berlin-based watchdog Transparency International. Graft has long been endemic, and is a major obstacle to foreign investment, as well as irritating ordinary Indonesians who often need to grease palms.

As he toured Banda Aceh, the province's capital, in his silver station wagon, Alwi said rebuilding the infrastructure and fixing the region's shattered economy could cost more than double the original estimate of US$1 billion.

"If you want to reconstruct, get the economy back on track, I don't think one billion would be sufficient ... more than double that," said the minister.

Alwi said the disaster had dealt a devastating blow to the local economy, which was finally showing signs of recovery after decades of civil strife between the military and separatist rebels who have been fighting for independence.

"The economy was starting to pick up. The impact of the tsunami is tremendous ... I think no one can ever imagine what the impact is, and the economy of course is in a state of almost collapse," he said.

"It will take years, not months, to see the economy active." More stories on Pages 2,3,4,5,6,7,11,13,14,20

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