Indonesian Political, Business & Finance News

Graft uncovered in dam project

| Source: JP

Graft uncovered in dam project

Yuli Tri Suwarni, The Jakarta Post, Bandung, West Java

The Bandung Legal Aid Institute (LBHB) claims to have uncovered
corruption in the Rp 8 trillion (US$963.8 million) Jatigede Dam
project in Sumedang, West Java.

LBHB director Wirawan alleged here on Thursday that a private
company and officials from the resettlement and regional
infrastructure ministry were involved in the corruption. He said
the institute would submit a report on the matter to the National
Police for investigation.

He said his team uncovered the alleged corruption during a
fact-finding inquiry into the acquisition of land for the dam in
two villages in Sumedang regency last year by the private company
and a nine-member team from the ministry.

"The private company and the team embezzled at least Rp 5
billion of the money earmarked to compensate residents of Cisurat
and Cibuluh villages for their land.

"The central government released Rp 3.8 billion for land
acquisition in Cisurat village, but villagers received only a
total of Rp 100 million. In Cibuluh, the government released Rp
1.4 billion to acquire 105 hectares of land, but no residents
have yet to receive compensation," he said.

He added that the agriculture ministry disbursed Rp 1 billion
for social facilities in the villages but only Rp 58 million
reached residents.

Wirawan and his team speculated that compensation funds for
other villages may also have been embezzled. The dam project
affects more than 20 villages in the regency.

He said the resettlement and regional infrastructure ministry
provided compensation not only for land, but also for buildings,
crops and animals, but the value was far below what had been
agreed to by the local administration and residents.

The ministry has so far acquired more than 50 percent of the
almost 4,900 hectares of land required for the project.

Wirawan said that besides the alleged corruption, his team
also found that the human rights of residents had been violated
by being given misleading information on the project and in some
cases being forced off their land.

According to the results of the institute's investigation, the
dam project, which is expected to be able to irrigate more than
130,000 hectares of farmland in the northern part of the
province, will affect more than 41,000 people or 7,163 families

Wirawan said the government should suspend the project until
the alleged corruption was resolved and the government had
provided clear information on the dam to avoid any confusion or
social unrest.

The project began in 1980 when a company began mapping
out the areas that would be affected by the dam. The project
remained in the planning stages for years, and then, with the
help of the local police, project developers began contacting
residents to inform them of the impending construction.

"The people were asked to sign an agreement for the project.
Now the project is still a potential source of conflict because
hundreds of people who were resettled to Garut have returned to
their villages because the substitute land proved to be
barren," he said.

West Java Governor Danny Setiawan said he was not well-
informed on the details of the alleged corruption.

"I will seek more detailed information on the alleged
corruption," he said.

However, he did say that the government would go ahead with
the dam project, which many regents had urged the government to
speed up to prevent water shortages during the dry season and
flooding during the rainy season.

The dam will play an important role in maintaining rice
production in the rice-belt regencies of Krawang, Subang,
Sumedang, Indramayu and Cirebon, he said.

He added that land acquisition for the project would be
completed by the end of this year, so construction could begin in
early 2005.

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