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AKARTA: Education Agency officials denied a graft allegation in the distribution of funds from the central government and the city administration under the School Operational Aids and Education Operational Aids schemes.

Earlier, Indonesia Corruption Watch reported Asadullah Junior High School No. 28 (SMPN 28) in Central Jakarta to the city's inspectorate division for allegedly misappropriating 2007-2008 funds that should have been channeled to the Johar Baru Independent Study Center in Central Jakarta, causing a potential loss of Rp 390 million (US$32,730).

"In 2008, the Municipality Supervision Board checked the financial report of SMPN 28 and it found no problem," Lardi, management unit head of the high school division at the Education Agency, said Thursday.

He said schools that managed study centers had the right to manage the fund and channel it to study centers based on their programs.

Head of the high school division Amsan Idris said the former principal of the school would be available during the current investigation held by the city's inspectorate.

The current principal of SMPN 28 refused to reveal the 2007-2008 financial report of his school, saying that he needed permission from the previous principal.