Agency to pay itself from housing fund for flood victims
Ahmad Junaidi, The Jakarta Post, Jakarta
Head of the City Housing Agency, Bachri Anuar, revealed that he would cut some of the Rp 2.5 million (US$250) fund for each of the flood victims' houses for renovation.
He said the agency would cut Rp 200,000 for the house renovation fund calling it an administration fee, and another Rp 250,000 as a 10 percent tax.
"We know the money is to help flood victims financially. Since it's a project, we must also charge for the administration fee which is legal according to the gubernatorial decree 22/2001 on administration fees," Bachri said on Friday.
The decree states the administration fee includes the house renovation design fee and the project monitoring fee.
Bachri claimed the agency would not be able to drop the fee as it has been a standard procedure that would be reported to the city inspector and the Development and Finance Audit Agency (BPKP).
"If the project has no design and doesn't follow other administrative procedures, we'll be investigated. The project has been started," he told reporters at the City Hall.
During a hearing with the City Council commission D on Development Affairs on Thursday, the agency said it has appointed 124 contractors to repair a total of 4,171 houses in 124 subdistricts in the city's five mayoralties.
East Jakarta mayoralty recorded the highest number of damaged houses reaching 1,486 in 27 subdistricts while North Jakarta recorded 903 damaged houses in 18 subdistricts.
South Jakarta and West Jakarta reported 800 damaged houses in 31 subdistricts and 38 subdistricts respectively while Central Jakarta reported 182 damaged houses in 10 subdistricts.
The house renovation fund is a part of the Rp 251 billion allocated by the administration to help flood victims.
After hearing of the plan for the agency to pay itself, councillor Ali Imron Hussein regretted it and urged the administration to hand over the funds without any reduction.
"The money is much too small to repair each of the 4,000 houses of poor families. It must not be reduced any further," said Ali of the United Development Party.
He also called on the administration not to apply "standard procedures", such as the administration fees, since the fund was for an emergency purpose to help flood victims.
Governor Sutiyoso himself seemed confused when asked about the reduction but said he hoped the fund would not be cut.
"Does the agency still need to cut the Rp 2.5 million fund? It must not. But I'll ask the agency to explain," he told reporters after Friday Muslim prayers at City Hall.
Due to the fund allocation for the house renovation, the agency also claimed it must delay several other projects including the M.H. Thamrin road rehabilitation project.