Council finds Rp 13.9b malfeasance in KPUD

Council finds Rp 13.9b malfeasance in KPUD

Damar Harsanto, The Jakarta Post, Jakarta

After two weeks of inquiries, the City Council said on Monday
that it uncovered irregularities totaling Rp 13.9 billion
(US$1.45 million) in the Jakarta General Elections Commission
(KPUD) Rp 168.6 billion 2004 budget and would submit its findings
to its chairman.

The council said that KPUD Jakarta had marked up the prices of
electoral staff vests resulting in state losses reaching Rp 9.7
billion and failed to pay income and value-added taxes amounting
to Rp 4.2 billion.

Chairman of Council Commission A on legal and administrative
affairs Achmad Suaidy said that the commission would submit its
final recommendation to the City Council speaker, who would pass
the report on to the City Audit Agency (Bawasda) and Supreme
Audit Agency (BPK).

"It is the City Council speaker who will decide whether or not
the case can be submitted to law enforcers," said Suaidy, who
hails from the United Development Party (PPP) faction.

Commission secretary Raja Natal Sitinjak said the commission
had no authority to directly submit its findings to external
institutions such as the Corruption Eradication Commission (KPK).

"The council's authority is only limited to monitoring the
city budget. We can seek clarification for alleged irregularities
in the use of the funds, but we can only report the findings to
relevant agencies for further follow-up," Raja said.

The commission said that it would recommend the dismissal of
KPUD officials responsible and would urge law enforcers,
including the KPK to pursue the irregularities by the electoral
commission as well as the city administration for failing to
provide clear guidelines for the KPUD.

However, councillor Rois Hadayana Syaugie of the Prosperous
Justice Party faction called on law enforcers to be proactive in
pursuing the case amid strong indications of corruption and
markups made by the KPUD.

"We allege tax evasion as KPUD members have failed pay their
income taxes and value-added taxes totaling Rp 4.2 billion," said
Rois.

The commission also found alleged fictitious tender processes
and markups in the procurement of 180,000 vests for KPUD
electoral staff that cost Rp 12 billion (or Rp 66,700 per piece)
by the KPUD. The price was far higher than the market price of Rp
25,000, he said.

"There have been alleged markups and manipulation in the
rental fees at the offices for the KPUD in the Thousand Islands
regency, which reportedly cost Rp 110 million," he said, adding
that KPUD chairman M. Taufik should be held responsible for the
irregularities.

Separately, councillor Solekhan Sularno of the Democratic
Party faction admitted that there had been a tug-of-war among
commission members during their closed-door meeting late last
week.

Some councillors wanted the commission to pass its report
directly to law enforcers, but some others emphasized that the
report had to be submitted to Bawasda and BPK only.

"Since the majority of the commission members want the
relevant antigraft agencies to tackle the problems in the KPUD,
we all went along with the decision (to submit the report to the
council chairman)," he said.