Why is there a risk of corruption in the delivery of aid following the tsunami in Indonesia?

Indonesia is known as one of the corrupt countries in the world according to the Corruption Perception Index (CPI) of Transparency International. Corruption is rooted in every aspect of society in Indonesia because law enforcement is weak, there is no proper monitoring mechanism, the bureaucratic system nationally and locally is not transparent, and government officials always use their authority and power to gain personal benefits. Besides that, public awareness about the damaging effects of corruption is still low. With these kinds of conditions in Indonesia, the sudden flow of large amount of money, goods and services will increase the risk of misuse of the tsunami aid.

What are the main aspects of aid delivery that are vulnerable to corruption in Indonesia?

Rehabilitation and reconstruction are the main aspects of aid delivery that are vulnerable to corruption since the fund for these programs is so enormous and they will be conducted over a long timeframe (about 5 years). Corruption can easily occur during these programs if no proper accountability scheme and transparency mechanisms are applied to the government, recipients and donors.

How difficult has it been to raise awareness of the danger of corruption in tsunami aid?

Corruption has deep roots in all aspects of life in Indonesia - no activity can be completely separated from corrupt behavior. It is quite difficult to raise public awareness of the danger of corruption since corruption itself has allegedly become a "culture". The un-transparent and unaccountable bureaucratic system in Indonesia also enhances windows of opportunity for people to engage in corruption.

What kind of activities have you been carrying out to address corruption in tsunami aid efforts in Indonesia?

TI-Indonesia and other NGOs who promote transparency and accountability in tsunami aid have worked together in lobbying government to strengthen their effort to increase transparency and accountability in the delivery of tsunami aid. This effort was then realized by government through the National Planning Agency (Bappenas) by the forming of an executive body to carry out the rehabilitation and reconstruction program. To support the executive body in doing their duty transparently and accountability, Bappenas has also formed a supervisory body and steering committee for these programs. In addition, they have designed a national action plan for corruption prevention in tsunami rehabilitation and reconstruction programs.

TI-Indonesia and other NGOs also held discussions and came up with suggestions to be presented at the expert meeting in Jakarta jointly organized by the ADB/OECD and TI. Suggested issues that were brought out at the meeting were: funding pledge tracking, disbursement tracking, implementation tracking, and impact tracking. Monitoring should also focus on procurement, fund allocation, cash flows, complaint mechanisms and the transparency of aid funds (both in terms of loans and grants).

Have you had any initial successes in addressing the issue of corruption in tsunami aid?

As already mentioned in the answer for question four, TI-Indonesia - which is a member of a civil society coalition providing aid to tsunami victims - has also encouraged the implementation of transparent and accountable financial reporting to donors. All aid given to recipients should have signed receipts. The receipt should state in detail the items received by the recipient.

What would you like to see happen - at home and abroad - to minimize the risk of corruption in tsunami aid?

Implementation of a national action plan for corruption prevention in tsunami aid. There is a need to balance emphasis on both donor and recipient country transparency. Donor countries should be accountable to the international community for their contribution to tsunami rehabilitation and reconstruction. Accountability and transparency mechanisms can be implemented both by recipient countries and donor countries.