City secretary sues construction company

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)