No kickbacks no business for printing company<\/p>\n
JAKARTA (JP): City councilors, in a scathing attack on city
\nofficials, said Tuesday many agencies under the city
\nadministration avoided giving orders to a city-owned printing
\nfirm because of poor prospects of getting kickbacks.<\/p>\n
"As a matter of fact, there are some gubernatorial decrees
\nrequiring them to deal with the firm. As it turned out, they
\n(municipal agencies) did not pay heed to any of them," Helmy AR
\nSyihab, chairman of the City Council's commission B on finance
\nsaid.<\/p>\n
PT Bumi Grafika Jaya, located on Jl. MT Haryono, South
\nJakarta, is a joint venture between the city administration and
\nthe Marga Jaya Foundation, where the former reportedly has 88
\npercent of the firm's share.<\/p>\n
Helmy said the firm, which was founded in 1972, remains in
\nlimbo after being left out in the cold by almost all municipal
\nagencies. Reportedly the agencies seemed to prefer dealing with
\nprivate firms from which they have a better prospect of getting
\n"commissions."<\/p>\n
"Being close to bankruptcy, the firm can today barely pay its
\nproperty tax and the salaries of its 88 workers," Helmy said
\nduring an inspection visit to the firm.<\/p>\n
The turnover of the firm totaled Rp 1.3 billion (US$606,626)
\nin 1993\/94.<\/p>\n
He said the firm is now in desperate need for injection of
\nfresh funds totaling Rp 3 billion (US$1.39) from the municipality
\nso it can revamp itself with modern facilities to compete with
\nprivate print companies.<\/p>\n
All the facilities are reportedly as old as its establishment.<\/p>\n
BOT<\/p>\n
Helmy said he supported the existence of the firm as well as
\nits need for more funds but he proposed the firm be relocated to
\nthe outskirts for the purpose of raking in more profit.<\/p>\n
"With no profit at all, the company will find it difficult to
\neven pay its property tax since the price of land in the area is
\nalready quite expensive," he said.<\/p>\n
The land in the area, which is among the most expensive area
\nin the city, is reportedly worth Rp 3 million ($1,399) per square
\nmeter.<\/p>\n
The city councilor proposed that the municipality offer the
\n1.2-hectare to private companies under the BOT (Build-Operate-
\nTransfer) scheme where under the city master plan the companies
\ncan build either hotels or office buildings there.<\/p>\n
"For a print company, it is not necessary to have a location
\nin such a strategic location as it is now. The firm still can
\noperate effectively on the outskirts," said Helmy.
\nFlurry of decrees<\/p>\n
Bumi Grafika Jaya, he said, has advantageous edge over its
\ncompetitors based on a series of gubernatorial decisions.<\/p>\n
The former governor Ali Sadikin first issued the first of many
\ndecrees in 1974, stating that the orders for printed material by
\nmunicipal agencies must be rendered to the firm.<\/p>\n
Aware that very few agencies complied with the decree, his
\nsuccessor Tjokropranolo issued another decree in 1979 with
\nsimilar content. This was followed by another, similar decree of
\n1983, issued by his successor Governor R. Suprapto.<\/p>\n
The same situation prevailed with Suprapto's successor, as
\nwell as the two governors who came after him. All three of them
\nalso issued decrees.<\/p>\n
The latest, but probably not last, decree came from Governor
\nSurjadi Soedirdja. His, issued in 1993, stated that the firm must
\nbe involved in each tender for supplying printed material to all
\nmunicipal offices, whose funds are taken from the routine and
\ndevelopment budget.<\/p>\n
If Bumi Grafika Jaya fails in the tender, reads the decree, 50
\npercent of the contract must be rendered to the firm at the same
\nprice as the firm which wins the tender has offered.<\/p>\n
The private firm can completely possess the contract only if
\nBumi Grafika is not even capable to run 50 percent of the
\ncontract at similar price. (jsk)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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