YLKI urges court settlement for water agreement dispute<\/p>\n
JAKARTA (JP): Zoemrotin KS, an executive of the Indonesian
\nConsumers Foundation (YLKI), urged the city-owned water company
\nPDAM Jaya yesterday to settle its current dispute with its local
\nand foreign business partners in court.<\/p>\n
She said settling the dispute in court would likely constitute
\nthe best solution to clarify whether or not collusion was really
\ninvolved in the awarding of the contracts.<\/p>\n
"Terminate the agreement contracts if collusion is discovered
\nor if the private partners have really neglected their
\nobligations, as is being alleged by PDAM," she said.<\/p>\n
Zoemrotin made the remarks after delivering a speech at a
\nseminar on PDAM's deal with the private companies held by the
\nAssociation of Indonesian Water Works Contractors.<\/p>\n
"I believe that the deal was awarded to the private companies
\nunder the influence of the 'K3N' (collusion, corruption, cronyism
\nand nepotism) practices," she said.<\/p>\n
The fact that the private companies got the project without
\nopen tendering was a strong indication of that, she said.<\/p>\n
"The other indication was that the companies which won the
\nprojects were actually 'those kind of people'", Zoemrotin said
\nreferring to PDAM's private partners PT Garuda Dipta Semesta
\n(GDS) and PT Kekar-Thames Airindo (Kita).<\/p>\n
She demanded that officials at PDAM, the city administration
\nand other institutions which were allegedly involved in the
\ndecision process from the outset also be investigated.<\/p>\n
"All officials, including the governor or minister who were
\ninvolved in the project from the beginning must not refrain from
\nsharing the responsibility. It's not fair if we only accuse
\nofficials who are in charge at the moment," said Zoemrotin.<\/p>\n
Governor Sutiyoso gave his approval in February for PDAM to
\nwork with GDS, a joint venture between tycoon Sudono Salim's
\nbusiness empire and French firm Lyonnaise des Eaux, and Kati, a
\njoint venture between former President Soeharto's eldest son
\nSigit Hardjojudanto's Kekarpola Airindo and British firm Thames
\nWater International, on 25-year cooperation agreements.<\/p>\n
PDAM's director, Rama Boedi, surprisingly announced his
\ncompany's takeover of the water management and operation
\nactivities from GDS and Kati on May 23, accusing the latter of
\nneglecting their technical and financial obligations as partners.<\/p>\n
The takeover decision was endorsed by the governor's Letter of
\nInstruction No. 131 dated May 22, he said.<\/p>\n
On May 26, some 3,000 PDAM employee, including Rama himself,
\npublicly voiced their determination at the company's Bendungan
\nHilir headquarters to end their cooperation with GDS and Kati.<\/p>\n
Zoemrotin, however, was against Rama's takeover policy, saying
\nit was a one-sided decision.<\/p>\n
"Rama, and even the governor himself, should have proved all
\nthe allegations against the private partners first before
\ndeciding to take over the management from them," she said.<\/p>\n
Separately, deputy governor for administrative affairs Abdul
\nKahfi indicated yesterday that the contracts between PDAM and its
\npartners GDS and Kati were still effective.<\/p>\n
Kahfi said the current dispute was only a matter of
\nmisunderstanding and that the two private companies might resume
\ntheir activities as soon as the case was clarified by all
\nparties.<\/p>\n
"But, when the cooperation will resume or how it will be
\nimplemented afterward totally depends on the governor," he said.<\/p>\n
Kahfi said that PDAM had misinterpreted the governor's
\ninstruction. PDAM tended to see the instruction as a command to
\nterminate the contract, he added.<\/p>\n
"The instruction just ordered PDAM to quickly take action to
\nanticipate the absence of water services," he said.<\/p>\n
He said that his office was still discussing the matter with
\nPDAM and its partners.<\/p>\n
However, Kahfi rejected Zoemrotin's idea of settling the
\ndispute in court. "Let's not go that far," he said. (cst\/ind)<\/p>",
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