Markus Junianto Sihaloho – Nearly $1 billion in funds intended for social aid programs was misused by just two government ministries, a government audit body has found, prompting claims on Wednesday that the funds are being used to bankroll political campaigns for next year's elections.
A Supreme Audit Agency (BPK) report attributed the misuse to several factors, according to Indonesian Forum for Budget Transparency (Fitra) director for investigation and advocacy Uchok Sky Khadafi.
Among those factors was a lack of clear criteria for the recipients of funds. BPK said the Ministry of Home Affairs had misused Rp 8.8 trillion ($887 million) from its social aid fund (Bansos) because of vague criteria.
The fund disbursed Rp 6.8 billion for capital spending and Rp 900 million for goods and services.
Similar problems were found in the Bansos funds administered by the Ministry for the Acceleration of Development in Underdeveloped Regions, leading to Rp 50.6 billion of funds being misused.
The BPK said that some Bansos recipients had been unaccountable to the ministry, and the ministry did not try to collect fines for delayed work.
"The national secretary of Fitra is therefore asking the House of Representatives to immediately demand accountability from the ministries regarding the misuse of the Bansos," Uchok said.
Ray Rangkuti, executive director of the Indonesian Civil Circle (LIMA), said the government had spent hundreds of trillion rupiah on Bansos since 1998. He said Bansos spending rose each year but the targeted recipients and their accountability was unclear.
He said a significant chunk of Bansos funds went to ministries headed by political operatives and suspected that the funds were used to benefit political parties ahead of the 2014 general election campaign.
Ray said that up to Rp 400 trillion of Bansos funds had been channeled to 20 ministries, including 10 headed by political party representatives.
"[Many people have] good intentions to create a clean 2014 general election that is honest, fair, democratic and clean from ill-gotten money," Ray said.
"The General Elections Commission [KPU] and the Elections Supervisory Board [Bawaslu] have to account for Rp 40 trillion in election funds. If not, the KPU will not have the authority to force political parties to do the same, including account for misused Bansos at ministries headed by political party cadres."
Ray said the election funds will be rolled out when the KPU finalizes the legislative candidate list in August, adding that the KPU needs to ask all political parties to report their party and legislative candidates' campaign funds.
He added that political parties should be punished, including through disqualification from the election, if they are found to use Bansos. But firm action could only be taken if the KPU and Bawaslu can account for the Rp 40 trillion general election funds, he said.
"If not, KPU and Bawaslu will not be able to produce a clean, honest, fair and democratic legislative and presidential election," Ray said.
Roy Salam from the Indonesian Budget Center said that Bansos in regional areas had been used to advance the political interests of incumbents seeking additional terms in office.
"Aside from the regional budget [APBD], Bansos was also used to boost the electability of candidates who ran for the regional head position. The funds reached Rp 50 trillion and it reached Rp 100 trillion in Jakarta," he said.
"Meanwhile, funds to overcome social problems had not been given regularly. There's also no clear regulations [for Bansos], thus making the funds prone to being misused by parties." He added that Bansos recipients were often people who had easy access to political parties.
Meanwhile, the Corruption Eradication Commission (KPK) has opened an investigation into the alleged bribing of Bandung District Court judge Setyabudi Tedjocahyono in connection with a Bansos graft case involving the Bandung city administration.
KPK deputy chairman Bambang Widjojanto made the announcement at his office last week but declined to provide details of the new investigation. He said it was related to Bandung Mayor Dada Rosada.
A source who declined to be identified said that Dada was targeted by the KPK and may be named as a suspect in the case. "Dada is a potential suspect," the source said.
Another source said the KPK was examining Dada's alleged involvement in the case. Unconfirmed reports said the KPK had prepared a sprindik [a document to name a person as a suspect] for Dada and that it was waiting to be signed by KPK leaders. Dada's term ends this year, and Ridwan Kamil was likely elected as his successor.