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)