BATAN cooperatives to sue developer

BATAN cooperatives to sue developer

JAKARTA (JP): Workers cooperatives of the National Atomic
Energy Agency (BATAN) will sue private developer, PT Roma Permai
Abdina, for an alleged swindle involving more than Rp 1 billion,
a lawyer said on Wednesday.

Lawyer Firmansyah Arifin of the Jakarta Legal Aid Institute
who met with cooperative executives on the same day, said his
client will also report the housing developer to the police.

"Our client repeatedly asked the developer to return the
down payment, but they have not received a satisfactory response.
So the cooperatives decided to take legal action," Firmansyah
said.

He said the cooperatives would ask the court to seize 5
hectares in Curug village, Bogor, as well as other assets
belonging to the developer.

"We will also report the developer's management to the
police."

He said the cooperatives signed an agreement with the
developer in September, 1994, to build 350 houses of the 21-
square-meter type in Curug village.

In the agreement, the cooperatives were responsible for
processing the permits for land appropriation in the village,
while the developer was to provide the funds, he said.

Without providing details on the permit processing, Firmansyah
said that the cooperatives had paid a down payment to the
developer to build the houses.

Construction on the project was expected to be completed in
1997.

"But until now, not a single house has been built by the
firm," he said.

Company representatives could not be reached for comment on
Wednesday.

According to Firmansyah, the cooperatives often asked the
developer to return the down payment, but the firm continued to
delay the payment.

He said the developer paid the cooperative Rp 150 million
following a meeting in the State Minister of Public Housing's
office last year.

"But since then the developer has reneged on the remainder,
which totals more than Rp 1 billion."

He said 350 employees of BATAN had paid at least Rp 4 million
each for the down payment.

"They only hope that their money will be refunded," he added.
(jun)