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Jakarta loses 40% of regional money to graft

Source
Straits Times - November 28, 2001

Marianne Kearney, Jakarta – As a parliamentary body yesterday reported that up to 40 per cent of funds meant for regional governments were lost to corruption, President Megawati Sukarnoputri expressed shock that some officials and legislators had refused to comply with an anti-corruption law.

The head of parliament's budget committee, Mr Benny Pasaribu, told legislators and Finance Minister Boediono that up to 40 per cent of funds targeted for welfare programmes had been misused.

In some cases, the money was used to buy luxury cars and houses for local legislators. In other cases, they were used for inappropriate projects such as upgrading government offices, he said, adding that the government should conduct an audit of the spending of such funds.

Under the government's decentralisation plan, the central government this year earmarked 60.15 trillion rupiah (S$11.4 billion) for infrastructure and community development in poorer provinces.

However, the head of a new government anti-corruption body questioned how parliament could curb corruption among regional governments when national legislators and even Cabinet ministers had failed to comply with an anti-corruption law.

Under the law, all government officials, ministers and legislators are obliged to declare all their assets and to be audited every year by the newly established State Officials Wealth Audit Commission.

"All of the parliamentarians have to set a good example. How can the government help fight KKN if 40 per cent of legislators have not yet followed the law," said Mr Jusuf Syakir of the commission, referring to corruption, collusion and nepotism.

To address the situation, he met Ms Megawati on Monday and asked the President to apply tougher sanctions against officials who refused to comply with the new law.

According to Mr Jusuf, only 60 per cent of national parliamentarians, and less than 30 per cent of regional parliamentarians, had completed the mandatory wealth audit report.

"The President was shocked when she heard the news," he said, adding that the Indonesian leader had agreed in principle to impose fines and jail sentences on those failing to comply with the audit body.

Mr Jusuf proposed fines ranging from 100 million to 500 million rupiah for legislators who refuse to be audited, and two-year jail sentences for anyone who lied about their financial assets.

"The parliament has to give the number one example in combating corruption," he said, noting at the same time that party faction leaders would duck the issue when confronted.

While applauding tougher sanctions for officials, Corruption Watch, a non-governmental organisation, said the government should empower the State Officials Wealth Audit Commission to properly investigate and prosecute corrupt offenders if it was serious about eradicating corruption among the country's officials and legislators.

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