Indonesian Political, Business & Finance News

Fairground gives contract to Mega's son

| Source: JP

Fairground gives contract to Mega's son

Kurniawan Hari, The Jakarta Post, Jakarta

The House of Representatives ad hoc team tasked to investigate
the management of the Jakarta Fairground has found irregularities
involving a contract awarded to President Megawati
Soekarnoputri's son Mohammad Rizki Pratama.

Team chairman Effendy Choirie disclosed on Monday that Rizki
had been given a privilege to control 30 hectares of land in the
fairground.

Upmarket apartments, a shopping center and hypermarket will be
constructed on the land by PT Theda Persada Nusantara which is
jointly run by Rizki and business colleagues The Hok Bing (a
businessman from Surabaya and the company's president director),
Samingun (director of Agriculture Pension Fund, Dapenbun, and the
company's commissioner), and Li Zhaoling (Chinese businessperson
with the Beijing-based Organization and Beijing Returned Overseas
Chinese Federation Partners).

The 44-hectare Jakarta Fairground is managed by the State
Secretariat.

"There is an indication of nepotism because the President's
son got the facility without public tender," Effendy of the
National Awakening Party (PKB) faction told the media here on
Monday. This may have caused losses to the state, he added.

Effendy said that the inquiry would summon Rizki, known as
Tatam, and his colleagues in PT Theda Persada Nusantara.

He added that Abdul Muis, director of the Jakarta Fairground
management board, would also be summoned on Friday for
clarification, along with Ratna Sintawati Tantudjojo, a notary
public for the agreement.

Effendy, however, refused to disclose the total value of the
transaction.

No confirmation was available from the fairground management
board. Abdul Muis could not be reached for comment on Monday.
Rizki could not be reached for comment either.

An agreement was signed on July 29, 2003 between Rizki
Pratama, Samingun, and The Hok Bing as the first party and Li
Zhaoling as the second party.

It said that the first party would provide the plot covering
312,983 square meters no later than Dec. 29, 2003 while the
second party would provide a master plan and all construction
costs. Based on the agreement Li Zhaoling has to provide a bank
warranty amounting to US$700 million.

The finding, Effendy said, clearly showed that Megawati was
unable to keep her own promise. "Megawati's promise that she
would not give privileges to her family and that she would combat
corruption is worth nothing," he added.

Effendy on behalf of the ad hoc team called on State Secretary
Bambang Kesowo to review his policy. If needed, the decision must
be canceled because it is not in line with the existing
procedures, he said.

The ad hoc team also called on the authorities to take legal
action against any state agency implicated in the alleged
wrongdoing.

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