Wed, 15 Jun 2005

KPK probes firms linked to KPU graft

JAKARTA: The Corruption Eradication Commission (KPK) has started investigating a number of firms over their possible roles in the alleged corruption at the General Elections Commission (KPU).

The KPK on Tuesday summoned Muallim Muslich, the former president director of insurance firm PT Asuransi Bumi Putera Muda (Bumida), which provided life insurance for KPU members and millions of poll officials during last year's general elections.

Bumida secured the insurance contract from the KPU without going through a tender, and provided a 34 percent discount for the service. This has raised suspicions that the insurance firm provided kickbacks to the KPU to obtain the contract.

The KPK has also summoned Hidayat, the former finance director of PT Sufindo Indah Prestasi, which was appointed by the KPU to supply ballot boxes. There have been allegations that the company paid some Rp 4.5 billion (US$473 million) in kickbacks to the KPU.

The KPK is currently investigating a high profile corruption case at the KPU, which, among other things, involves markups on the prices of election materials, and the collection of kickbacks from firms that were given contracts by the election commission.

Several KPU officials have been named suspects in the case. -- Antara