T

he Corruption Eradication Commission (KPK) is investigating the embezzlement of Rp 1.27 trillion (US$125 million) in haj funds from the Ministry of Religious Affairs.

"We have finished analyzing reports and evidence," KPK deputy chairman for enforcement, Bibit Samad Rianto, said here Monday.

He did not give details of the investigation, saying he would explain further on Tuesday.

Indonesia Corruption Watch (ICW) has handed over a series of reports on the alleged embezzlement of haj funds to the KPK over the past several weeks.

The most recent report detailed the alleged embezzlement of Rp 1.27 trillion from the 2008 haj fund and the alleged manipulation of the 2009 fund.

ICW coordinator for monitoring and public services, Ade Irawan, said recently this number was calculated from several factors, including $102 million in mark-ups of the price of airfares - the equivalent of $532 per pilgrim.

According to the ICW, the ministry has routinely marked up the cost of airfares charged to pilgrims wishing to perform the haj.

Ade said airfares represented the greatest cost of the haj and can account for as much as 50 percent of total costs.

"Crude oil prices in 2008 reached the lowest level in years at $60 per barrel. So, haj costs in 2008 should have been lower than in the previous years."

Pilgrims going through the ministry paid $1,867 each in 2008. In 2006 the price of crude oil was significantly higher, at $75 per barrel, but the official cost of haj was $1,372.

The KPK suspects the government inflated costs by $321 per person in 2009.

Officials at the religious ministry have denied the allegations.

In December last year the ICW reported to the KPK the alleged embezzlement of funds from the Ummah Trust Fund (DAU). The fund is suspected of being used as a personal piggy-bank by Religious Affairs Minister Maftuh Basyuni and members of the House of Representatives.

This information included two receipts showing a $2,800 travel allowance was given to two lawmakers and Rp 1.2 billion in incentives and transportation allowances were awarded to 15 members of the House's working committee deliberating expenses for the haj. They also detailed at least three payments to the minister.