Sutiyoso to withdraw flood fund

JAKARTA: Governor Sutiyoso has said he has ordered his staff to withdraw the Rp 4.2 billion flood fund managed by the Institute of Civic Education in Indonesia (ICE in Indonesia) chaired by TV host Irma Hutabarat.

Sutiyoso said the decision was taken following allegations about misappropriation of the funds.

"I want to involve the NGOs in managing public funds, but it seems that they are not ready to do so," Sutiyoso told the media on Tuesday.

Irma is now suspected of misusing the fund raised for flood victims during a charity event organized by the administration in March.

She denied that she had misused the funds, saying that the money had been deposited in bank accounts owned by the institute, not in her personal account.

She said Rp 3.6 billion of the funds was deposited in Lippo Bank and HSBC, while the remaining Rp 600 million had been distributed as scholarships to about 400 elementary, junior and senior high school students in the city.

Government Watch (GOWA) had earlier criticized ICE in Indonesia for not yet disbursing the funds to flood victims and alleged that some of the funds were deposited in Irma's personal account.--JP