JAKARTA - The corruption watchdog KPK has ordered six banks in Java, Sumatra and Kalimantan to close accounts of provincial government officials that were receiving interest from savings accounts that belong to their local administrations. Haryono Umar, staff of the KPK said that the banks would bear incentives for government officials that parked government funds in savings accounts.
"Just like ordinary customers are offered a free umbrella or a vacation, the banks offered to transfer the annual interest on government accounts to the officials’ personal accounts," Haryono said. The KPK estimates that some 200 billion Rupiah (14 million euro) in interest has been lost by the state between 2004 and 2008. Haryono did not give the names of the banks or officials involved.
"The interest should be reimbursed to the local government accounts. We want officials to select banks based on professionalism and not kickbacks," he said. The KPK announces just last month that they were working together with Bank Indonesia to monitor the use of local and regional funds which are parked in local banks.
"A lot of corruption has taken place by misappropriating local funds.We are asking that these funds be monitored so that they are not channeled to the personal accounts of rogue officials," Haryono said. Bank Indonesia and the KPK will oversee the return of the funds to state coffers. When there is an indication of corruption, the KPK will investigate the case.
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JAKARTA - The corruption watchdog KPK has ordered six banks in Java, Sumatra and Kalimantan to close accounts of provincial government officials that were receiving interest from savings accounts that belong to their local administrations. Haryono Umar, staff of the KPK said that the banks would bear incentives for government officials that parked government funds in savings accounts.
