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World Bank Demands Indonesia Return $10M
Associated Press 09.29.2004
The World Bank has asked Indonesia's government to repay US$10 million it loaned the country to buy school textbooks, after an investigation found the money was stolen by corrupt publishing companies.
The bank barred 10 individuals and 26 companies - whom it said took part in "fraudulent and corrupt practices" related to the scheme - from receiving any more World Bank-financed contracts, it said in a statement released Wednesday.
Indonesia is one of the world's most corrupt countries. Central and local government officials regularly siphon off large chunks of foreign aid and loans despite crackdown efforts.
The US$10 million was part of a package of loans, the first of which was disbursed in 1995, that was earmarked to buy junior high school textbooks.
The bank launched an investigation in late 2000 into graft allegations linked to the textbook procurement after local news magazine Tempo alleged widespread irregularities in the program.
"Following an investigation ... the World Bank declared misprocurement and requested the Government of Indonesia to repay $10,000,000 from the disbursed proceeds of the loan," the bank's statement said.
The statement did not say whether government officials were involved in the corruption.
No one from the government was immediately available for comment. It was not clear how the World Bank intended to press its demand.
The World Bank, which has lent millions of dollars to Indonesia since the 1997-98 Asian financial crisis, says it is committed to ensuring that none of its loans are stolen.
There are estimates that corrupt government officials steal up to a quarter of development funds that international agencies disburse in Indonesia
http://www.forbes.com/home/feeds/ap/2004/0.../ap1565393.html .
World Bank Demands Indonesia Return $10M
Associated Press 09.29.2004
The World Bank has asked Indonesia's government to repay US$10 million it loaned the country to buy school textbooks, after an investigation found the money was stolen by corrupt publishing companies.
The bank barred 10 individuals and 26 companies - whom it said took part in "fraudulent and corrupt practices" related to the scheme - from receiving any more World Bank-financed contracts, it said in a statement released Wednesday.
Indonesia is one of the world's most corrupt countries. Central and local government officials regularly siphon off large chunks of foreign aid and loans despite crackdown efforts.
The US$10 million was part of a package of loans, the first of which was disbursed in 1995, that was earmarked to buy junior high school textbooks.
The bank launched an investigation in late 2000 into graft allegations linked to the textbook procurement after local news magazine Tempo alleged widespread irregularities in the program.
"Following an investigation ... the World Bank declared misprocurement and requested the Government of Indonesia to repay $10,000,000 from the disbursed proceeds of the loan," the bank's statement said.
The statement did not say whether government officials were involved in the corruption.
No one from the government was immediately available for comment. It was not clear how the World Bank intended to press its demand.
The World Bank, which has lent millions of dollars to Indonesia since the 1997-98 Asian financial crisis, says it is committed to ensuring that none of its loans are stolen.
There are estimates that corrupt government officials steal up to a quarter of development funds that international agencies disburse in Indonesia
http://www.forbes.com/home/feeds/ap/2004/0.../ap1565393.html .
Corruptions in our country is like a heavy cancer in our body. It is very difficult to eliminate corruptions. The main reason is because almost all of our government employees steal the people's money. If we prosecute those government employees, it is impossible. If most government employees are put in jails, who will run the country?
I hate those corruptors!
