JP\/3\/Pam<\/p>\n
PAM Jaya told to resume construction of water main<\/p>\n
JAKARTA (JP): City councilors are urging the City Water
\nCompany, PAM Jaya, to resume construction work of a 17-kilometer
\nwater main, stretching from Pos Pengumben to a point near the
\nOrchid Hotel in West Jakarta.<\/p>\n
\"While the dispute between PAM Jaya and PT Grade Utama (the
\ncontractor) has yet to be settled, the construction of the water
\nmain should not be deferred, because it is for the interest of
\nthe public,\" Arie Putra Bintana, the secretary of the City
\nCouncil's Commission D on public works, told The Jakarta Post.<\/p>\n
Arie made the statement late last week after attending a
\nhearing between his commission with PT Grade Utama and its lawyer
\nfrom Hotma Sitompoel and Associates.<\/p>\n
PAM Jaya has unilaterally annulled its contract with the
\ncontractor. It accuses PT Grade Utama of subcontracting the water
\nmain project without its approval. PAM has also charged that the
\nprivate company bribed its officials during the tender period.<\/p>\n
Arie's stance was supported by Sumekar, another member of
\nCommission D, who said the dispute should not in anyway be used
\nby either party as an excuse to delay the completion of the
\nproject.<\/p>\n
\"Both PAM Jaya and PT Grade Utama should place the interests
\nof the public above theirs, and resume the construction of the
\nproject,\" Sumekar said.<\/p>\n
Arie added that if PT Grade Utama should be proven to be in
\nthe wrong, the work should be transferred to and continued by the
\nnext lowest bidder.<\/p>\n
Arie emphasized the importance of the continuation of the work
\nbecause the World Bank loaned the government money to finance the
\nproject.<\/p>\n
\"In the near future we will meet with the municipal
\nadministration officials who are handling this case,\" Arie told
\nthe Post. The councilors have met with PAM Jaya to discuss the
\nproblem.<\/p>\n
Martin Peter Yan Malingkas, the president of PT Grade Utama,
\nsaid his company had completed 549 meters of the 17-kilometer-
\nlong, 55.85-thick pipe when PAM Jaya ordered the firm to stop the
\nconstruction on March 3, 1994.<\/p>\n
PAM Jaya said it annulled its contract with PT Grade Utama on
\nMarch 3 because it found out that the company had subcontracted
\nthe entire construction project to Suhardi of PT Kokoh Semesta.
\nThis move was reportedly documented in a May 19, 1993, agreement
\nbetween PT Grade Utama and Suhardi and Indrawan Djaja of PT Kokoh
\nSemesta.<\/p>\n
According to PAM Jaya, this arrangement runs counter to the
\nstatement made by PT Grade Utama one day before the firm was
\ndeclared to have won the contract on Jan. 6, 1994.<\/p>\n
In the statement, PT Grade Utama committed itself to doing all
\nthe work by itself and to assuming all responsibility if proven
\nto have subcontracted the entire project to a third party.<\/p>\n
On March 11, 1994, PT Grade Utama asked PAM Jaya to review the
\ncancellation on the ground that it had terminated its contract
\nwith PT Kokoh Semesta on March 8, 1993. This was reportedly
\nconfirmed with a document verified by a notary.<\/p>\n
PT Grade Utama also asked Governor Surjadi Soedirdja to review
\nthe cancellation.<\/p>\n
Feeling that both PAM Jaya and the governor ignored its plea,
\nPT Grade Utama then took the problem to the Jakarta
\nAdministrative Court, which on March 25, 1994, ordered PAM Jaya
\nto delay the enforcement of the annulment. (arf)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp3pam-1447899208",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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