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Ministry follows up on funds misuse in C. Java

The Office of the Coordinating Minister for People’s Welfare is currently following up on allegations of misappropriation of funds by the National Program on People’s Empowerment (PNPM Mandiri) in Bayat district, Klaten, Central Java

The Jakarta Post
Klaten
Sat, October 12, 2013

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Ministry follows up on funds misuse in C. Java

T

he Office of the Coordinating Minister for People'€™sWelfare is currently following up on allegations of misappropriation of fundsby the National Program on People'€™s Empowerment (PNPM Mandiri) in Bayatdistrict, Klaten, Central Java.

A public complaint filed in July revealed an irregularity in the management of the savings/withdrawal of rotating funds for women (SPP) in the organization'€™s activity management unit (UPK) worth Rp 3.3 billion.

Based on an audit and investigation conducted by a team from the ministry, irregularities were found not only in connection with the rotating funds, but also with the people'€™s direct cash aid (BLM), worth Rp 270 million. The investigation found a phoney financial report and that a fictitious recipient had been receiving the SPP funds for the last eight years. The ministry, however, is not taking the case to court.

'€œWe don'€™t wish to punish the community. We just want to teach them a lesson,'€ said the ministry'€™s poverty alleviation and community empowerment affairs deputy Sujana Royat.

The PNPM Mandiri, launched on April 30, 2007, is a national program aimed at mitigating poverty through community empowerment.

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