C. Java loses billions in social aid fund fraud: NGO
A local NGO is alleging that Rp 26.8 billion (US$2.8 million) in social aid funds controlled by the Central Java administration were issued fraudulently or unaccountably in 2011.
The Central Java Committee for the Investigation and Eradication of Corruption, Collusion and Nepotism (KP2KKN) made its allegations based on a Supreme Audit Agency (BPK) report.
According to the BPK, most recipients have not submitted accountability reports and many recipients were not entitled to the aid, the KP2KKN said.
Some recipients used false addresses and one recipient allegedly received Rp 89 million (US$8,480) in benefits through nine separate applications, a representative of the committee said.
Central Java Governor Bibit Waluyo and the head of the Regional Finance and Asset Management Agency were responsible, KP2KKN monitoring division coordinator Eko Haryanto alleged on Tuesday.
“It’s the governor who allowed the distribution of social aid funds without accurate verification, while the head of the Regional Finance and Asset Management Agency is the one who authorized distribution,” Eko said.
A decree approved by the Home Minister in 2011 stipulates that social aid recipients must submit accountability reports at least three months after receiving the funds. (iwa)