Indonesian Political, Business & Finance News

Rp 2 billion foreign aid scam being investigated

| Source: JP
Rp 2 billion foreign aid scam being investigated

Agus Maryono, The Jakarta Post, Indramayu

The Indramayu regency legislative council is conducting an
investigation into the alleged swindling of foreign aid worth Rp
2 billion (US$200,000) intended for the local drinking water
company.

The chairman of the legislative council, Iwan Hendrawan, said
that despite difficulties, the legislative council would summon
related authorities, including the Indramayu regent and president
of the local drinking water company, to provide a clarification
on the alleged foreign aid scam.

"The funds earmarked to finance the planned revamp of the
company have become a public issue since no repair or
rehabilitation projects have been carried out. Both the local
administration and the company's management have to account for
the alleged scam," he said.

Iwan also said that the legislative council would seek
relevant information on the foreign aid from the Finance Ministry
and the National Development Planning Agency (Bappenas).

The legislative council would ask the local government's
prosecutor's office to conduct a further investigation should the
company's management fail to provide a clarification of the
funds' usage, he said.

"Government prosecutors should be proactive in fighting
against corrupt and collusive practices in the local
administration and the drinking water company," he said.

He added that the company was also facing a serious financial
crisis, given the leakage of Rp 1 billion from workers' social
security programs.

Iwan said that, in addition to Indramayu, Subang Regency had
also secured Rp 11 billion in foreign aid to help finance local
development programs but had seen the funds embezzled by local
officials, who had not been subject to any proper investigation.

So far, the local government prosecutor's office has grilled
Regent Irianto M.S. Syaifuddin and Ridono Aidat, former assistant
to the secretary of the local administration, over the alleged
swindling of the company workers' insurance scheme funds, but no
further legal process has taken place.
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