Thu, 26 Nov 1998

Riot rocks Pinrang over embezzlement of public money

PINRANG, South Sulawesi (JP): Tens of thousands of angry people went on a rampage on Wednesday, burning down some government offices in protest at the local administration's handling of a scam involving two local cooperatives.

The Pinrang regent's office, the district prosecutor's office, the district court building and the office of the Sawito district chief were set on fire by the mob. Many other buildings were badly damaged in the rampage that took place mid-morning in this city 250 kilometers north of the South Sulawesi capital of Ujungpandang. There were no casualties.

The riot erupted when residents -- many of whom were clients of the Latimojong and Buasa Sawito cooperatives that had stopped operation after their managers were suspected of embezzlement -- learned that the local administration would open only five counters to refund their money.

The residents had been upset anyway because the authorities had originally planned to pay their money back on Friday, but later postponed payment to Wednesday, according to Masnawi A.S., member of a team set up to handle the cooperatives' ex-customers.

The cooperatives' owners have been detained for alleged involvement in the scams.

"Because of the payment deferral and the team's unsatisfactory service, tens of thousands of customers who arrived in the town early Wednesday vented their dissatisfaction by torching buildings," he said.

Outnumbered, security personnel could only watch helplessly as mobs ran around destroying facilities. Several police officers guarding the regent's office were pelted with stones by the mobs.

The angry crowd marched on the Pinrang Prison -- where the cooperatives' managers were detained -- but could not enter due to tighter security.

Tension remained high in the town late Wednesday, while thousands had to walk because no public transportation was allowed to enter or leave the town.

The riot also paralyzed school activities. Andi Sri Mulia, a senior high school student, said classes in his school were stopped as soon as the riot exploded at about 11 a.m.

Andi Machmud Napi, a local community leader, blamed the unrest on the local administration's ineptitude in handling the case. He criticized the team's use of only five counters.

"Remember, the amount of money that the cooperatives have collected from their customers runs into hundreds of billions of rupiah, while the team was planning on Wednesday to return only Rp 3.1 million to the ex-clients," he said.

He pointed out that many of the mob had been customers for years, some of them had even deposited billions of rupiah in the hope of making high interest.

"The cooperatives cheated their customers," he said.

The cooperatives' ex-customers have several times staged demonstrations to demand their money back and many had been hospitalized for severe stress after losing their money. (rms/30)