Officials quizzed over markup in car purchase<\/p>\n
JAKARTA (JP): City administration secretary Fauzi Bowo said on
\nFriday several city officials had been questioned in connection
\nwith a reported markup in the purchase of 55 Hyundai Accent
\nsedans for city councillors.<\/p>\n
\"They (the officials) were questioned recently at the City
\nInspectorate Office over the alleged markup,\" Fauzi said. He
\nrefused to identify the officials.<\/p>\n
He said he did not know how much each sedan cost the city
\nadministration, but admitted to having been involved in the
\npurchase of the vehicles.<\/p>\n
As the administration's secretary, Fauzi was responsible for
\nall correspondence by the governor in the process of purchasing
\nthe cars.<\/p>\n
The city administration purchased the sedans in mid-February
\nat the request of City Council Speaker Edy Waluyo. Criticism
\ngreeted the purchase, with many speculating it was aimed at
\nwinning the hearts of councillors ahead of the governor's
\naccountability speech at the end of this month.<\/p>\n
The Hyundai dealer set the on-the-road price for a Hyundai
\nAccent at Rp 105 million (US$10,606).<\/p>\n
The city administration announced the sedans were purchased
\noff-the-road at Rp 106 million each, bringing the total cost of
\nthe purchase to Rp 5.8 billion. The off-the-road price exempts
\nthe city administration from taxes for vehicle ownership and
\nchanges in vehicle ownership.<\/p>\n
City councillor Tjuk Sudono of the National Mandate Party
\n(PAN) said he suspected the price of the cars had been marked up.
\nHe pointed to the conflicting accounts given by the dealer and
\nthe city administration.<\/p>\n
\"Marking up prices is a habit in the city administration. I
\nhave just found out that the specifications of my car are
\ndifferent from what the city administration said,\" Tjuk said.<\/p>\n
He also said the City Sanitary Agency had marked up the price
\nof an excavator that it bought last year. The agency paid Rp 1.5
\nbillion, although the market price was Rp 1.1 billion.<\/p>\n
Despite the irregularities, Tjuk said he had no plan to return
\nhis car.<\/p>\n
Several councillors also dismissed the possibility of them
\nreturning the cars, saying they were afraid the vehicles would
\njust be given to city officials.<\/p>\n
City administration spokesman Muhayat denied on Friday the
\nprice of the vehicles was marked up.<\/p>\n
He said the city administration had spent Rp 460 million less
\nthan what the budget allocated for the purchase of the cars. The
\nvehicles were bought using money from the 2000 budget.<\/p>\n
City Property Office head Husin Djawas said so far no
\ncouncillors had returned their vehicles.<\/p>\n
\"The cars can be returned to the council's secretary, who
\nwould hand them over to the governor,\" Husin said.<\/p>\n
He said of the 55 sedans, 12 remained in his office's
\nwarehouse because the councillors they were intended for had not
\nreturned from the haj in Saudi Arabia. (jun)<\/p>",
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