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fter detaining former members and staff of the East Java Legislative Council, local prosecutors have also named an NGO leader as a suspect in the embezzlement of more than Rp 13 billion in welfare funds.

The suspect is identified by the initial N, and leads an NGO dealing with issues related to fine art and handicrafts based in Sidoarjo, East Java.

N is accused of being involved in the misappropriation of funds disbursed to finance the People's Socioeconomic Empowerment Program (P2SEM).

Sugeng Riyanta, head of special crimes at Sidoarjo prosecutor's office, said Saturday the NGO leader had received Rp 250 million of the funds, based on testimonies given by several witnesses.

"The fund should have been channeled *to the entitled recipients*, but the suspect used it for unclear purposes," he told The Jakarta Post.

Sugeng said that the NGO leader had confessed to misusing the fund and had eventually returned Rp 174 million to the administration.

The prosecutors are investigating the remaining Rp 76 million that has not been handed over to the state, Sugeng added.

He said the returned money could be used as evidence to demand a lenient sentence for the suspect who has not yet been arrested.

"We will question N again to find other possible suspects from NGOs and other community organizations in the case," he said.

"Perhaps it is possible that councilors and administration officials are involved in the case."

Prosecutors previously arrested former council speaker Fathorrasjid, council member Mu'alimin, councilor-elect Jumanto and council secretariat official Pudjiono, for their alleged roles in the scandal.