Poso council demands answers in graft case
Ruslan Sangadji, The Jakarta Post, Poso, February 20, 2008

Members of the Poso legislative council in South Sulawesi have demanded the immediate settlement of a Rp 58 billion (US$6.4 million) recovery fund graft case.
The fund was designed to revive economic growth among victims of conflicts in Poso, but was instead allegedly channeled to a number of cooperatives, the council's speaker, Sawerigading Pelima, said.
He said, based on the council's findings, a portion of the fund was channeled to a cooperative using a ficticious name and to another cooperative and his family members.
"This is stupid. The case is getting serious, so it requires urgent settling," Sawerigading said Sunday.
He said the fund was also partly given to a number of cooperatives whose legal stature was questionable and to other cooperatives established soley for the sake of receiving the money.
The fund was handed over by the central government via the office of the coordinating minister for people's welfare to the Poso regency administration.
The central government also assigned the local industry, trade and cooperatives office to channel the money to those entitled to receive it through cooperatives. At least 57 cooperatives have been recorded to have received Rp 50 million to Rp 200 million each.
In the fund's disbursement, the industry, trade and cooperatives office imposed a levy of Rp 5 million to Rp 25 million on each cooperative, depending on the amount they had received. The fund distributor reported 27 cooperatives who had levies collected from them.
Upon inspection, most cooperatives turned out to have no offices. It is also thought much of the money was not spent on empowering conflict victims, but to buy private facilities like cars and motorcycles. "Yes, we've checked it, but the regency administration officials insist the fund disbursement already reached the target," Sawerigading said.
Manuel Pasepe, head of administration at the Poso industry, trade and cooperatives office, denied the allegation. "There is no malfeasance whatsoever," he said.
Manuel said the 57 cooperatives receiving the money were chosen from a total of 141 in Poso. Any cooperative failing to meet a set of requirements would automatically be dropped, he said.
Many conflict victims at Bone Sompe in Poso Kota district said they had not received aid. Hundreds of people went to the Poso regency office recently to question the fund distribution.
Syarifuddin Labatjo, one of the victims' lawyer, said the money should have been received last July.
"But many of them have got nothing thus far. What's wrong with this?" he asked.