Infrastructure projects canceled over corruption

Infrastructure projects canceled over corruption

JAKARTA (JP): The government has canceled 39 infrastructure
projects under the Ministry of Communications which were tainted
by corruption, collusion and nepotism.

Minister of Communications Giri Suseno Hadihardjono said on
Tuesday that the projects, which were to be jointly developed by
private companies and state companies under his ministry, would
have resulted in substantial losses to the government had they
been allowed to go ahead.

He said the contracts only benefited private firms in the
ventures, some of which were linked to former president
Soeharto's family and friends.

"We've canceled 39 government infrastructure projects and
we're renegotiating 26 others," he said in a hearing with House
of Representatives Commission IV for public works and
transportation.

Nineteen projects overseen by the ministry have been allowed
to continue because they were considered beneficial to the
government, would improve standards of living, and were free of
corruption and collusion.

Giri said most private partners in the canceled projects were
appointed directly by the government without a competitive
tender.

"Many of them had also failed to meet the terms of their
contracts and had set prices at above agreed levels," he said.

Several of the private partners in the projects were companies
related to the family and cronies of former president Soeharto.

PT Citra Lamtoro Gung Persada, owned by Soeharto's eldest
daughter Siti Hardijanti Indra Rukmana, lost its contract with
state railway company PT Perumka to develop a railway and toll
road in Jakarta. The company also lost its contract with state
port operator PT Pelindo III to develop a container center in
Surabaya's Tanjung Perak harbor and its contracts with state
airport operators Perum Angkasa Pura I and II to expand
Adisumarmo airport in Surakarta, Central Java, and develop a new
airport in Medan.

The government is under mounting public pressure to clean up
governance in the country and bring Soeharto to trial to face
charges of corruption during his 32-year rule.

Soeharto stepped down in May following massive riots which
claimed over 1,200 lives.

Attorney General Andi M. Ghalib said he planned to question
Soeharto on Wednesday over allegations that he had amassed a
fortune worth billions of dollars during his time in office.

Airports

At the hearing, Giri also spoke out against student
demonstrators who recently invaded the runways at airports in
Medan (North Sumatra), Ujungpandang (South Sulawesi), Padang
(West Sumatra) and Pontianak (West Kalimantan).

He said the students, who were protesting against military
brutality during the recent special session of the People's
Consultative Assembly, had damaged the image of the country's
aviation industry.

Giri said the demonstrations could induce the ICAO to revoke
or downgrade the status of local international airports because
of the lack of proper security.

If our airports were to be downgraded, most international
airlines would end flights to the country, which would damage
tourism here, he explained.

He also said the demonstrators had violated the International
Civil Aviation Organization (ICAO) policy on runway security.

"In every airport, only those with passes are allowed to enter
the runway area. It is not permissible to have hundreds of
students roaming the area," he added.

Giri said the demonstrations had forced the cancellation or
rerouting of at least 24 domestic flights.

"We have asked the minister of defense and security to protect
transportation and telecommunications facilities so that we do
not see a repeat of these incidents in the future," he said.
(gis)