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.