Safety fund misuse to be investigated

JAKARTA (JP): Central Jakarta Mayor Andi Subur Abdullah ordered his staff on Thursday to examine alleged mismanagement in the distribution of Rp 764 million of the social safety net fund in the Karanganyar subdistrict of Central Jakarta.

"I ordered my staff to meet with officials from the investigative team of the National Development Planning Board (Bappenas) to investigate the matter," he told The Jakarta Post.

Of the Rp 764 million received by the subdistrict from Bappenas for the 1998/1999 fiscal year, Rp 536 million was earmarked for infrastructure development, while the remaining Rp 228 million was allocated for the poor and unemployed.

However, a large percentage of the fund, which was distributed by the local resilience board chaired by Sutarmo, did not reach its intended targets.

Instead of being distributed to the needy, a large portion of the fund reportedly was swindled by officials in the subdistrict office who falsified the signatures of the fund's supposed recipients.

The Bappenas investigative team uncovered malfeasance in the distribution of the fund during a visit to the subdistrict on Wednesday.

"There is sufficient evidence to show the fund was swindled by subdistrict officials," Deddy Supriady Bratakusumah, a member of the team, said.

The mayor and the head of Karanganyar subdistrict, Erwanto, who also is the supervisor of the social safety net fund in the area, said a number of subdistrict staff members were involved in the transgression.

The mayor said 70 percent of the fund had been disbursed, while the rest would be distributed in May.

If Sutarmo was involved in the malfeasance, he should resign from his post, Subur said.

"The police should also be asked to investigate the case," he said.

A document obtained by The Jakarta Post on Wednesday showed that 10 recipients of the social safety net fund in the subdistrict were subdistrict officials.

"Endang Suherman, head of administration affairs at the subdistrict office, was one of the 10 people who received the fund," Baron Saefudin, a local leader, said.

A fruit vendor in the subdistrict said she applied for the fund but never received the money, adding she needed the money to expand her business. (01)