KKN infects many projects in N. Sumatra

KKN infects many projects in N. Sumatra

Apriadi Gunawan, The Jakarta Post, Medan

Some 70 percent of development projects in the North Sumatra
provincial administration were tarnished by the practices of
collusion, corruption and nepotism (KKN), two business
associations said on Saturday.

According to evidence found by the National Contractors
Association (Gapeknas) and the National Distributor Partners
Association (Ardin), over 50 projects worth Rp 550 billion (US$61
million) funded by state and local budgets were contaminated with
collusion, corruption and nepotism.

The head of the North Sumatra branch of Gapeknas, Junjungan
Pasaribu, predicted that the total value of graft-infected
projects accounted for some 70 percent of the total value of
development projects managed by the provincial administration.

RAJ Sinambela of Ardin, and also chairman of the North Sumatra
Anticorruption Movement, revealed that the graft-infested
projects included 48 flood-control projects in Nias regency worth
Rp 31 billion and the Rp 23 billion Deli River improvement
project.

Other suspicious projects include the Rp 12 billion renovation
project for the provincial administration's office, a Rp 11
billion project for "transfer of inventories", a Rp 48 billion
flood-control project in Asahan regency, a Rp 38 billion material
procurement for state electricity company PT PLN and the Rp 6.5
billion renovation of buildings belonging to the Medan State
University.

Sinambela said the corruption in those projects had been going
on since the administration of governor Raja Inal Siregar which
began in mid 1990s right up to the present under governor T.
Rizal Nurdin.

"KKN occurs in almost all agencies and government offices,
especially in agencies that are responsible for lucrative
projects," RAJ Sinambela told The Jakarat Post.

In addition, the two associations also found evidence of
corruption in a number of infrastructure projects worth Rp 600
billion funded by the Asian Development Bank.

Sinambela said that his organization had reported those abuses
to the North Sumatra Prosecutor's Office.

The head of the North Sumatra Prosecutor's Office, Chairman
Harahap, confirmed that his office had received the reports about
the graft allegations, and promised to investigate them.

Responding to the allegations of rampant corruption in
projects managed by the provincial administration, the newly-
installed North Sumatra secretary general Muchyan Tambuse said
that he would restart the bidding process for projects that had
irregularities.

"This has become the commitment of this country to root out
corruption everywhere. For sure, we will investigate those KKN
cases," he promised.

Junjungan Pasaribu explained that KKN practices started long
before a project commenced, namely from the pre-qualification and
registration of bidders for the projects.

Those people often hid behind Presidential Decree No. 18/2000
on the guidelines on the procurements of goods and services to
award projects to certain parties, often ending up in the
practice of nepotism.

"This is embarrassing but we cannot cover the facts. Our legal
system and the will of legal authorities are still very weak, so
KKN happens in every government institution, including in
enterprises belonging to local administrations," he said.