Indrawati reminds local governments to avoid using brokers to disburse funds

Jakarta (ANTARA News) - Finance Minister Sri Mulyani Indrawati reminded the regional governments to refrain from using brokers for the process of disbursing transfer funds to the regions, as it was not in accordance with the prevailing governance.

Indrawati, during a speech at the transfer program to the regions and village funds in the 2019 budget year in Jakarta on Monday, said that the action had the potential to violate the law, as it was a corrupt behavior that could harm state finances.

"Many local governments, especially those newly elected district heads and their mayors, could easily be seduced by such things," he noted.

She stated that many brokers were operating and claimed to be able to help with the disbursement of the budget, including officials in the Ministry of Finance, who were caught red-handed by the KPK.

This condition still occurs, because many local government employees have not fully obtained information regarding the procedures for disbursing transfer funds to the regions, even though distribution can be done through electronic-based networks.

To that end, the Ministry of Finance encourages commitment with the KPK, so that such practices of violation of the law in disbursing the state budget do not happen again, and the number of "white-collar" crimes committed by regional heads would decrease every year.

"We are working with the KPK to clean up and to encourage transparency and accountability, so that governance will be better," Indrawati revealed.

At present, there are various services in the form of website consultations, teleconferences, and information centers at the Directorate General of Fiscal Balance to provide information regarding the process of disbursing transfer funds to regions.

This network-based interactive process can be effective in suppressing leakage of goods expenditures, especially the cost of official travel, because the regional heads no longer need to come to Jakarta to obtain information about transfer of funds to the regions.

Previously, she also revealed that as many as 111 regional heads were related to cases of transfer of funds to regions that were not in accordance with governance, and most were involved in the process of channeling Special Allocation Funds (DAK).

Source: ANTARA News

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