Purwokerto Prosecutor's Office Investigate Alleged Misappropriation Of Ex-PNPM Rural Funds

Head of the Purwokerto District Attorney's Office Sunarwan. ANTARA/Sumarwoto

PURWOKERTO - The Purwokerto District Attorney's Office (Kejari) is investigating allegations of misappropriation of funds from the former National Community Empowerment Program (PNPM) Mandiri Rural and Village Funds in Kedungbanteng District, Banyumas Regency, Central Java.

Purwokerto's Chief Prosecutor, Sunarwan, said that the investigation into the case of alleged misappropriation of funds from the former PNPM Mandiri Rural Area was still under investigation.

"It's still in the investigation stage," he said, quoted by Antara, Friday, May 20.

According to information gathered, investigators for the Corruption Crime (Tipikor) Kejari Purwokerto until Friday (20/5) had examined 25 people related to cases of alleged misappropriation of ex-PNPM funds and Village Funds in Kedungbanteng District which were invested in PT LKM Kedungmas.

In this case, the total state losses on the alleged misappropriation of these funds reached Rp. 6.7 billion, which came from the former PNPM Mandiri Rural funds of Rp. 5.9 billion and the Village Fund of Rp. 800 million.

This amount of funds was invested in PT LKM Kedungmas from 2015 to 2022 for savings and loan financial services activities. The profits from these financial services have been given to the commissioners and management of PT LKM Kedungmas.

Meanwhile, the 25 people examined by the Corruption Eradication Commission investigator at the Purwokerto Kejari consist of commissioners and administrators of PT LKM Kedungmas, a number of village heads (kades), and former village heads in Kedungbanteng District, former sub-district heads, state civil servants within the Banyumas Regency Government, and employees of the Financial Services Authority Office. (OJK) Purwokerto.

The Purwokerto Corruption Eradication Commission investigator is scheduled to examine a number of witnesses next week, including those from the Ministry of Villages, Development of Disadvantaged Regions and Transmigration in Jakarta.

When confirmed on Friday (20/5) evening, Head of the OJK Purwokerto Office, Riwin Mihardi, said that the financial services practice carried out by PT LKM Kedungmas was an illegal activity because it had not yet obtained OJK permission.

"In 2016 I had applied for a business license as an LKM (Microfinance Institution) on behalf of PT LKM Kedungmas, but it was rejected because there was no certainty regarding the use of ex-PNPM capital," he said.

However, he said, PT LKM Kedungmas continued to practice financial services illegally so that the Purwokerto OJK in 2018 issued a written warning.

In the written warning, OJK Purwokerto reminded that the activities of PT LKM Kedungmas are illegal practices that have criminal consequences.

"Then in 2019 another application for a business license was applied on behalf of PT LKM Kedungmas Digdaya, but it was rejected again because there is still no certainty regarding the use of ex-PNPM capital to date," said Riwin.