Indonesian Political, Business & Finance News

Invalid bills found in ex-brothel land scandal

| Source: JP

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.

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