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.