City Hall blacklists two companies in vehicle scam

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)