Suspected World Bank aid leak in N. Sumatra
Apriadi Gunawan, The Jakarta Post, Medan
World Bank officials have asked North Sumatra Governor Tengku Rizal Nurdin to investigate the alleged embezzlement of Rp 276.5 million as part of its financial assistance package to eight regencies in the province.
"Unless the case is investigated, the World Bank threatens not to disburse its assistance for the next phase," Martius, a consultant of the Subdistrict Development Program (PPK) Management, said after a meeting between WB representatives and the governor here on Friday.
The three-member WB team comprised of Pieter Evers, Soeroso Josoestromo and Anthony Toft.
Martius said the reported embezzlement occurred in the regencies of South Tapanuli, North Tapanuli, Toba-Samosir, Mandailing-Natal and Nias between Sept. 1998 and Dec. 2001.
According to Martius, Rp 150 million is embezzled in Bantahan subdistrict, South Tapanuli; Rp 43 million in Batang Natal subdistrict; Mandailing-Nata and Rp 23 million in Garoga subdistrict, North Tapanuli.
In addition, he said that Rp 23 million was allegedly stolen in Arse and Sosa subdistricts in South Tapanuli, and Rp 37.5 million was taken from Lahusa subdistrict, Nias.
He said the misappropriated funds were part of Rp 52.750 billion donated by the World Bank to develop the new eight subdistricts.
Martius said the theft was detected during a review of development projects by a team including members of the National Management Consultancy (NMC), the Home Affairs Ministry, the National Development Planning Board and World Bank last month.
He also said auditors would come from Jakarta to investigate the projects to determine who should be held responsible.
The spokesman for the North Sumatra Administration, Sakhyan Asmara, said the governor would issue a warning to the eight regents, asking them to thoroughly look into the case, as it has hurt the country's image internationally.
"We will ask the eight regents to give an official report on the cases, and on how they will be handled," he said.