Sutiyoso to withdraw flood fund

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