Jakarta, ID
Monday, May 28 2012, 20:15 PM

National

Regional officials took gratuities for years: ICW

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Receiving gratuities, kickbacks and bribes has been business as usual for local officials across the country in the past two decades, according to a study conducted by Indonesia Corruption Watch (ICW).

The study was released following the finding of the Corruption Eradication Commission (KPK) that 27 regional banks had channeled funds to regional leaders’ accounts between 2002 and 2008.

The banks included Bank Sumut in North Sumatra, which allegedly channeled Rp 53.81 billion (US$5.76 million), Bank Jabar Banten in West Java (Rp148.29 billion), Bank Jateng in Central Java (Rp 51.06 billion), Bank Jatim in East Java (Rp 71.48 billion), Bank Kaltim in East Kalimantan (Rp 18.59 billion) and Bank DKI in Jakarta (Rp 17.07 billion).

ICW deputy coordinator Adnan Topan Husodo said such practices could be considered as “gratuities” or “bribery” because they led to conflict of interest.

“The banks gave the money as repayments to the governors for depositing the regional budget funds at the banks,” he said, adding that such practices had been carried out for at least 20 years.