City secretary sues construction company

JAKARTA (JP): City Secretary Harun Al-Rasyid has filed a libel suit against developer PT Megaria Perkasa, who first laid charges with the North Jakarta District Court against Harun for allegedly failing to pay the construction costs of a project.

As PT Megaria's charges could not be proved, Harun is fighting back by demanding the firm pays him Rp 100 million (US$45,454) in compensation for libel.

Harun also demanded that PT Megaria publicly apologize through printed media.

Harun was appointed chairman of a committee in charge of the construction of an office building for the North Jakarta branch of the ruling political grouping Golkar.

PT Megaria Perkasa had accused Harun of refusing to pay the development costs even though the project had been completed.

Under a contract between PT Megaria and the development committee of the building, the total cost of construction was set at Rp 124 million. Both parties later agreed to reduce the cost to Rp 105 million.

In the lawsuit filed by PT Megaria, Harun was asked to pay Rp 329 million, which included interest and other losses caused by the alleged nonpayment.

Judge Sofyan Basyid, who presided over the court case yesterday, said that based on material evidence and witnesses' testimonies, Harun has already paid the Rp 105 million in development costs to Muhammad Abdul Rochim, the director of PT Megaria.

Besides dismissing PT Megaria's charge against Harun, the judge also said that the company has defamed Harun in his capacity as both the city secretary and a representative of Golkar.

As the charge against Harun was covered by local media, the company has to publicly apologize to Harun and Golkar's North Jakarta branch in a half page notice in printed media which ran the story of the trial, Sofyan said.

Dedi Supardi, administrative and financial director of PT Megaria, who represented the company in the trial, said that he will appeal. (29)