Forestry Sector Graft Could Cut Line to Billions in Carbon Trade | the Jak

Forestry Sector Graft Could Cut Line to Billions in Carbon Trade | The Jak... http://www.thejakartaglobe.com/news/forestry-sector-graft-could-cut-line...

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HOME NEWS BUSINESS INTERNATIONAL TECH SPORTS LIFE & TIMES OPINION MY JAKARTA BLOGS Forestry Sector Graft Could Cut Line to Billions in Carbon Trade Sunanda Creagh | January 12, 2010 Billions of dollars set to flood into the nation under a UN-backed forest protection scheme are at risk from graft unless the government puts strong oversight mechanisms in place, a report released on Tuesday warned.

Indonesia has the world’s third-largest area of tropical forest and stands to gain billions of dollars every year from a proposed greenhouse gas offset scheme called reduced emissions from deforestation and degradation that was formalized at the recent global climate talks in Copenhagen. Investors should make sure their carbon dollars don't go up in smoke, one study warns. (AFP Photo) REDD allows polluters to earn tradeable carbon credits by paying developing nations not to chop Related articles down their trees. The Darkening Skies Over Durban 9:08am Nov 23, 2011 However, a two-year study by the Bogor-based Nissan Aims to Be No. 1 for Environmentally Center for International Forestry Research warned Friendly Vehicles 10:31pm Oct 24, 2011 that cases of corruption and financial mismanagement Massive S.Korea River Project Still Making Waves in the nation’s forestry sector revealed systemic 12:01pm Oct 19, 2011 weaknesses that could scuttle REDD. Editorial: SBY Shows the Way With Forestry “Investors should be looking very carefully at the Pledge 9:11am Sep 28, 2011 financial governance conditions in the countries where The Future of Indonesian Forests 9:16am Sep 28, they will be investing their funds. Like Indonesia, MOST READ LATEST COMMENTS 2011 many countries with tropical forests have long track records of mismanaging public financial resources, SHARE THIS PAGE particularly in the forestry sector,” said one of the Dozens Injured at Indonesian BlackBerry report’s authors, Christopher Barr. Launch Like Be the first of your friends to like this. Envelopes of Cash Show Indonesia But the Ministry of Forestry said the government was Corruption Rivaling Suharto Era committed to transparency. “Everything is now BPOM Says These 22 Coffee Brands Are transparent, measured and monitored. Not just in the Bad for You 2 0 0 1 REDD sector but in all our financial management, it’s now very tight,” said Masyhud, a ministry spokesman. Indonesia Tops World’s Deforestation List “It’s not possible to play around. Every institution has Ibas and Aliya Marry at Cipanas Palace Share with google+ : 0 an inspector general and we also now have the Bakrie Coal Mining Partnership Turns Supreme Audit Agency [BPK] and the Corruption Sour Post a comment Eradication Commission [KPK].” Romance, Politics and a Dash of Bling at Please login to post comment Grand Wedding Indonesia last year set up a legal framework for Anggun Gets Real REDD. Several pilot projects are under way and the Comments governments of Norway, Australia, Germany and the 27 Arrests After Batam Riot Violence United States have promised millions of dollars in Dispute Over Land After Coal is Found Salimharko 4:55am Jan 13, 2010 funding for REDD activities. Make death penalty mandatory for illegal logging. Not for the actual loggers, but for the ring leaders The Cifor report recommended that Indonesia set up and masterminds of the syndicates that conduct new mechanisms to monitor the money flowing into these illegal activities. the country for REDD projects, and to strengthen existing oversight bodies such as the KPK. Previous 1 Next The report revealed details of mismanagement of the Reforestation Fund, which was established in 1989 under former President Suharto and which collected billions of dollars in levies from timber

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concessionaires to pay for reforestation.

The Cifor study was partly based on a previously unpublished 1999 audit by Ernst & Young, which found $5.25 billion was lost from the fund through systemic financial mismanagement and fraud between 1993 and 1998.

Control of the Reforestation Fund has now been transferred to the Ministry of Finance and institutions such as the KPK and BPK have helped to improve the situation since the fall of Suharto in 1998, Barr said.

“But significant problems have continued through the post-Suharto period, many of which raise fundamental questions about how future REDD payment schemes will be managed,” he added.

KPK spokesman Johan Budi said the agency was now investigating senior Forestry Ministry officials and lawmakers suspected of taking bribes for a radio communications system contract in 2007.

“The problems that have plagued the Reforestation Fund over the last 20 years are likely to reoccur” without further strengthening of oversight systems, Barr said.

Indonesia last week revealed an ambitious plan to create an additional 21.15 million hectares of forest by 2020.

Reuters

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