BPKP Identifies Misused PNPM funds in Kulonprogo, Yogyakarta

I am currently in Indonesia doing a short consultancy for the World Bank on the prosecution of corruption cases relating to the World Bank supported National Community Empowerment Program (PNPM).   In preparation I have been starring PNPM articles in my Google Reader feed but have not had a chance to add any to the blog.  One popped up yesterday so I thought I’d better add it!

The article in Suara Merdeka reports that a BPKP audit determined that only 50 percent of misused PNPM funds from three sub-districts have been returned.  In total BPKP determined that Rp. 243 million ($27,000) was misused and Rp. 110 million ($12,000) returned.  Interestingly the article reports that one sub-district facilitator disagrees with BPKP’s interpretation:

Chairperson of the PNPM UPK [Financial Management Unit] in Lendah sub-district, Eka Erawati, said the funds were actually used for operational of the TPK [Activity Implementation Team] at the village level and the empowerment of the LPMD (Community Empowerment Office). But in its audit, BPKP determined that [the funds] were used as an incentive for the collection of the program’s loans for productive economic activities.

Ketua UPK PNPM Mandiri Pedesaan Kecamatan Lendah, Eka Erawati mengatakan, dana tersebut sebenarnya digunakan untuk operasional TPK di tingkat desa dan pemberdayaan LPMD (Lembaga Pemberdayaan Masyarakat Desa). Namun oleh BPKP dalam auditnya dianggap sebagai insentif penagih program pinjaman usaha ekonomi produktif.

The micro savings and loan aspect of the program can often be quite problematic and the UPK seems to have quite a lot discretion in the use of its operational funds.  This is something that might need tightening in the program.

Suara Merdeka article: BPKP Temukan Penyimpangan Pengunaan Dana PNPM.

h/t KP2KKN’s media blog, here.

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