Indonesian Political, Business & Finance News

City Hall probes irregularities causing losses of Rp 139.32b

| Source: JP

City Hall probes irregularities causing losses of Rp 139.32b

JAKARTA (JP): The city administration team is investigating
irregularities in the implementation of various development
projects, which have caused losses amounting to about Rp 139.32
billion, Deputy Governor for Administrative Affairs Abdul Kahfi
said on Tuesday.

Kahfi said officials of the city administration and the
Ministry of Home Affairs would meet this week to discuss
irregularities in the cases.

He said the meeting, which would also be attended by officials
of the Development Finance Comptroller (BPKP), was intended
mainly to crosscheck reports of malpractice from the past three
years.

"As soon as we finish the investigation we will not hesitate
to punish those who are involved," Kahfi said, adding that such
punitive action was needed to uphold a clean government.

Information about the losses was first revealed by city
secretary Fauzi Bowo in a meeting with members of the House of
Representatives last month.

Fauzi quoted BPKP's report as showing that the Rp 131.69
billion losses were incurred in 2,735 cases of corruption.

Of these, 829 cases were uncovered by BPKP in the 1996/1997
fiscal year with losses amounting to Rp 50.28 billion, 1,082
cases in 1997/98 with losses of Rp 50.97 billion and 824 cases in
the 1998/1999 fiscal year with Rp 30.44 billion in losses, the
report said.

These instances were categorized as "not yet solved" cases.
Total losses from graft actually reached Rp 143.69 billion, but
about Rp 12 billion of this could be salvaged.

Besides the rampant misappropriation of funds, BPKP also
uncovered inefficiency and neglect in many projects, which were
fully financed by the city administration.

Inefficiency caused losses amounting to Rp 7.22 billion from
21 projects, while neglect caused losses of another Rp 408.93
million.

Head of the inspectorate Sutardjianto said that the
inefficient and neglected projects included the construction of
school buildings and bridges and the rehabilitation of canals.

"There were also cases which showed that certain newly built
facilities collapsed after only months," he said.

However, Sutardjianto refused to give further information
about those involved in the projects or the location of the
instances of corruption.

"Let's wait until the meeting (between the administration and
the ministry) is completed," he said. (ind)

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