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KPK detains ex-ministry official over alleged misappropriation of COVID-19 stimulus funds
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Former Home Ministry regional finance administration director general Mochamad Ardian Noervianto (center) is ushered into a car after attending a press conference announcing his arrest by the Corruption Eradication Commission (KPK) at the agency's Merah Putih building in Jakarta on Feb. 2, 2022. (Antara/Reno Esnir)
T
he Corruption Eradication Commission (KPK) arrested Mochamad Ardian Noervianto, formerly the Home Ministry's regional finance administration director general, on Wednesday for allegedly demanding kickbacks from local officials from Southeast Sulawesi derived from the National Economic Recovery (PEN) funds.
The agency previously named Ardian a suspect on Jan. 27 in a bribery case that also implicated inactive East Kolaka regent Andi Merya Nur and Muna Environment Agency head Laode Muhammad Syukur – the latter two were also named suspects in the case.
Ardian, in his former capacity as a Home Ministry director general, had the authority to approve the allocation of government loans to finance regional administrations’ programs under the central government’s PEN program in the 2021 budget.
The government launched the PEN program in 2020 to provide economic stimulus to businesses and expand social assistance to the poor as economic activity significantly cooled due to COVID-19 curbs. In 2022, the government has increased the budget for the program to Rp 455.6 trillion, the allocation of which will be prioritized to three areas, namely health care, social aid and economic recovery.
According to the KPK, Andi approached Laode, who knew Ardian, in March 2021 to help her secure Rp 350 billion (US$24.3 million) from PEN funds for East Kolaka regency.
Ardian had promised to approve the proposal and asked for kickbacks equal to 3 percent of the funds, which was expected to be wired in several phases to Laode’s bank account.
“[Ardian] allegedly demanded the kickback to be given in [three] stages, namely 1 percent after the issuance of a Home Ministry letter [to recommend the approval of the loans], another 1 percent after initial assessment by the Finance Ministry and the remainder after SMI signed a memorandum of understanding with East Kolaka regency,” KPK deputy commissioner Alexander Marwata said on Wednesday, as quoted by antaranews.com.
