Whistleblowing System and Fraud Early Warning System on Village Fund Fraud: The Indonesian Experience

Abstract

This research aims to investigate the effectiveness of village fund fraud prevention models by analyzing the implementation of the Fraud Early Warning System (FEWS) and whistleblowing system to good village governance towards clean government. This study used a descriptive qualitative research method by conducting interviews to explore more information about the problems of preventing village fund fraud. The paradigm used is the interpretive and methodology paradigm used to express meaning is phenomenology to describe and explain how behavior in the implementation of FEWS and the whistleblowing system against village fund fraud. Determination of informants was carried out with a sequential technique, namely all village officials and communities involved in managing the process of allocating village funds in Sumowono Subdistrict, Central Java Province, Indonesia as research informants. The population of this study was 105 village officials and community members from 16 villages in Sumowono District. This study shows that in managing village fund fraud, complaints about village fund fraud were mainly driven by courage from the local community in their respective villages. The strategy to reduce fraud is to provide opportunities for the community to implement FEWS and the whistleblowing system as a preventive strategy to prevent village fund fraud. FEWS and wshistleblowing system activities in village funds also face various challenges. The implementation of the FEWS and the effective whistleblowing system, the fraudsters will think again whether to continue fraud or cancel the behavior.