Invalid bills found in ex-brothel land scandal

The Jakarta Post, Jakarta

The special team set up by the City Council to investigate alleged corruption in the acquisition of the 10.9-hectares of land on which the former Kramat Tunggak brothel complex was located in North Jakarta, has found 103 fraudulent receipts for the purchase of land worth more than Rp 10 billion (US$1 million).

The city's seal was not affixed to any of the fraudulent receipts.

The team's chairman, M. Suwardi, who is also the council's deputy chairman, revealed on Friday that the receipts, which were dated between May and December of last year, were for the purchase of land and buildings in the brothel complex.

"The receipts should bear the city's seal as they involve transactions worth between Rp 150 million and Rp 1.5 billion," Suwardi, who represents the National Mandate Party, asserted.

He said the team had asked the city administration about the receipts but it was unable to provide an explanation.

He claimed the team had tried to investigate the matter on the ground, but failed to meet the owners of the land as they had already moved.

The team had then recommended to the Jakarta Prosecutor's Office that it investigate possible corruption in the purchase of the land, he said. "The prosecutor's office should question the officials in charge of the land acquisition," Suwardi said.

The area is currently being developed as an Islamic center after the brothel was officially closed in 1999.

Separately, Deputy Governor for People's Welfare Djailani claimed that he knew nothing about the 103 fraudulent receipts.

"If they did this (making out the receipts without affixing the city seal), then they are really shooting themselves in the foot," Djailani told reporters at City Hall.

The Supreme Audit Agency (BPK) earlier reported that the city suffered Rp 26 billion in losses during the process of acquiring the brothel site.

The administration bought the land from pimps in the brothel at a price of Rp 84 billion, or 90 percent of its Taxable Property Sale Value (NJOP).

According to the regulations, the land should have been purchased for just 40 percent of the NJOP as none of the pimps had title deeds.

Some government property, including a doctor's official residence and a small public park, were also included as part of the land to be purchased. There was no need to purchase them, however, as they were already state assets.