City Hall blacklists two companies in vehicle scam

JAKARTA (JP): The city administration has blacklisted two private companies for suspected collusion in the jacking up of outlays for official vehicle maintenance, an official said on Wednesday.

Ma'mun Amin of the city secretary's office said the companies colluded with 17 officials from the city supplies office to mark up the number of city-owned vehicles for use in calculating the maintenance budget for the first eight months of the 1998/1999 fiscal year.

The alleged wrongdoing cost the administration Rp 332 million.

"I cannot reveal the names of the companies because it would be unethical," Ma'mun told The Jakarta Post by telephone.

The companies were chosen through tenders to supply spare parts for maintenance of official vehicles, he said.

Blacklisting bars them from doing business with any firm under the supervision of the administration, Ma'mun added.

Punishment will soon be meted out to the guilty officials.

He said one would be fired, two would be removed from their positions and transferred to "uninteresting" duties and six would be demoted.

"Another five of will receive the standard punishment, either in the form of a major reduction in salary or postponement of promotions," Ma'mun said.

"The remaining three will receive strict reprimands from their superiors and warning letters."

City secretary Fauzi Bowo estimated in January Rp 7 billion in losses caused by malfeasance in use of the maintenance fund.

The fraudulent budget calculation put the number of city vehicles in routine operation at 6,797. The correct number, based on vehicle ownership documents, was 3,873. (ylt)