Subdistrict councils still in the dark about loans

Subdistrict councils still in the dark about loans

Rendi A. Witular, The Jakarta Post, Jakarta

Subdistricts here are still in the dark about how to properly
manage the Rp 250 million (US$25,189) soft loan promised to each
of them by the city administration, but that has not stopped
subdistrict councillors from already planning how they are going
to use it for themselves.

City Governor Sutiyoso on Tuesday symbolically handed over Rp
250 million to each of the city's 267 subdistricts under the
Subdistrict Community Empowerment Program. The signatures of the
subdistrict head, subdistrict council (Dekel), and an appointed
non-government organization are needed to withdraw the money from
city-owned Bank DKI.

Head of Pejagalan subdistrict council in North Jakarta Asep
Edi Effendi, said on Thursday that they had not been informed how
to withdraw the money.

"We haven't received the money because we still don't know the
procedure. We will consult the subdistrict chief on the
withdrawal," he said.

However, Asep had planned to cut 1.5 percent of the loan,
amounting to Rp 3.75 million.

"We have to cut it by 1.5 percent to cover food and drink
costs during council meetings and other expenses," he said.

He said they had gathered the data on residents who were
deeply in need of the loan.

Furthermore, Asep said the council had appointed three people,
whom he called non-governmental organization representatives. But
he said he had forgotten their names.

The NGO assigned to monitor the use of the loan will in turn
receive Rp 22 million.

Similar uncertainties and irregularities were also found in
Petamburan subdistrict, Central Jakarta.

The council head, Abdul Azis, revealed that he had yet to
withdraw the money as they needed more time to inform subdistrict
residents about the program.

But he said the Central Jakarta mayoralty office had appointed
two NGO members to assist them with the program.

When asked about the backgrounds of the NGO members, Azis also
failed to elaborate, saying he had yet to meet the individuals.

On the contrary, Central Jakarta mayoralty spokesman Asbarani,
denied that the mayoralty had recommended any NGO to the Dekel.

The soft loan, with an interest of 1 percent per month, is
aimed to restore informal businesses and improve public
infrastructure. Sutiyoso said that the debtors were not obliged
to return the loan.

Flood victims had waited with great anticipation for the loan,
hoping that it would mend their loses during the flood.

Alin, a resident of Jl. Teluk Bayur in Pejagalan subdistrict,
said she would apply for it to boost her business, because her
small noodle restaurant was shut down for three weeks due to the
floods.

"I've heard the news on the loan from TV, but I'm not so sure
about how to apply. I hope that the loan will be delivered to
those who are really in need," said Alin, who needs at least Rp 5
million to restore her business.

Last month, the administration granted Rp 50 million to each
of the 167 flood-hit subdistricts. It was unfortunately spoiled
as members of the subdistrict councils had reportedly siphoned
off the aid.

Sutiyoso said earlier that it was the public's responsibility
to probe and control any aid irregularities. However, he did not
elaborate on how flood victims could apply for a loan.