Corruption suspected in toll road construction
Corruption suspected in toll road construction
JAKARTA (JP): An official at state-owned toll road operator PT
Jasa Marga said on Friday he suspected irregularities in 20 out
of 100 toll road construction contract agreements.
"Most of the projects did not pass the required procedures
when appointing the investors. A joint government team is
focusing the investigation on seven out of the 20 projects that
are suspected of causing the biggest losses to the state," Frans
S. Sunito, the commercial and development director of Jasa Marga,
said as quoted by Antara.
Frans said two of the seven toll road projects were the
Cawang-Tanjung Priok and the Tanjung Priok-Jembatan Tiga/Harbour
toll roads, both of which were constructed by private toll road
operator PT Citra Marga Nusaphala Persada (CMNP), with a 30-year
repayment period (1994-2023) and investment values reaching Rp
1.2 trillion.
Siti Hardiyanti Indra Rukmana, the eldest daughter of former
president Soeharto, holds a 2.92 percent stake in CMNP.
Others are the Kebon Jeruk-Pondok Pinang toll road,
constructed by PT Citra Mataram Satria Persada, with a 35-year
repayment period (1996-2031) and an investment value of Rp 708
billion; the Cikunir-Cakung-Cilincing-Tanjung Priok toll road,
built by PT Citra Bhakti Margatama Persada, with a 33-year
repayment period (1995-2028) and an investment value of Rp 1.098
trillion; the Cikampek-Padalarang toll road construction by PT
Citra Ganesha Marga Nusantara, with a 27-year repayment period
(1995-2022) and an investment value of Rp 1.296 trillion; the
widening of the Kebon Jeruk-West Tangerang toll road by PT Adhika
Prakarsatama, with an 18-year repayment period (1994-2022) and an
investment value of Rp 108 billion; and the widening of the
Cawang-Cibitung toll road by PT Bangun Tjipta Sarana with a 25-
year repayment period (1994-2019) and an investment value of Rp
242 billion.
Frans specifically questioned suspected irregularities in the
contract agreement between PT Jasa Marga and CMNP.
"The agreement said PT Jasa Marga would be held responsible
for settling PT CMNP's construction fund loans to the creditors,
once the agreements was dropped," he said.
Frans said the agreement stated that the width of the harbour
road should be 3.5 meters, but CMNP had only constructed the toll
road to a width of 3.25 meters.
He cited another irregularity in the widening projects of the
Cawang-Cibitung and the Kebon Jeruk-West Tangerang roads.
"The investors obtained share revenues from the toll roads
before the projects were completed," he said.
He said PT Jasa Marga also bore the burden of contingent
liabilities proposed by investors of the Cikunir-Tanjung Priok
and the Kebon Jeruk-Pondok Pinang toll, which forced the state-
owned company to pay the deficit on the appropriation of the
project's land.
Frans said the joint team had been investigating for suspected
corrupt and nepotistic practices during the construction and
operation of the 110 toll road projects for the past eight
months.
The team comprises of officials from, among others PT Jasa
Marga, the finance ministry and the State Ministry of Public
Works.
Besides the investigation, starting last August the government
has given the investors the opportunity to renegotiate the
contracts with the government.
A renegotiation team was formed in August last year,
comprising of officials from PT Jasa Marga, the finance ministry
and the State Ministry of Public Works. The renegotiation is
aimed at settling irregularities over the contracts through
arbitration.
State Minister of Public Works Rozik Boedioro Soetjipto said
the state ministry would give the investors until this March at
the latest to settle the problems.
"If it can't be settled by March, the government may bring the
case to court," he warned the investors.
Frans said the investors would never be ready to bear the
losses.
"They are sticking with the agreement, while we want some
parts of the agreement -- the parts which have brought losses to
the state -- to be modified," he said.
He added the investors had given a cold response to a Rp 200
billion claim filed by the government to them.
Teddy Kharsadi, the president director of CMNP, said the
company was ready to face a trial in the court.
"The company has constructed and operated the toll road in
line with the agreement," he said, adding that the agreement was
legal. (asa)