Indonesian Political, Business & Finance News

Leakages in JEC project likely to burst soon

| Source: JP

Leakages in JEC project likely to burst soon

Asip A. Hasani, The Jakarta Post, Yogyakarta

State-owned construction company PT Adhi Karya has been
implicated in a Rp 125 million bribery scandal to secure support
from the Yogyakarta provincial legislature for the Jogya Expo
Center (JEC) upgrade.

Several members of the legislature have admitted receiving
money from PT Adhi Karya who successfully bid for the Rp 42.5
billion contract. The provincial attorney's office is
investigating.

Though the project was supposed to be completed in time for
the ASEAN Tourism Conference late last month, the building is far
from finished.

Indonesian Democratic Party of Struggle (PDI Perjuangan)
legislative faction chairman Agus Subagyo confirmed on Thursday
that a legislator had offered a PDI Perjuangan legislator an
envelope containing a sum of money.

"The money has been left untouched until now. PDI Perjuangan
faction will meet tomorrow to decide our stance over this issue,"
he told reporters at the provincial legislative office.

Agus, however, refused to disclose the amount of money inside
the envelope, the legislator who handed the money over or reveal
other legislators who had received money from the construction
company.

Similar revelations came from Golkar Party faction chairman
Kharuddin who said he returned the money to the company.

"I was offered an envelope with a sum of money inside but I
returned it as I knew that it was from PT Adhi Karya," he said.

Another legislator who did not wish to be identified said he
had already spent the money because he did not know where it came
from.

Adhi Karya reportedly gave bribes totaling Rp 125 million to a
number of legislators who were considered to have played an
important role in winning the legislature's support for the
construction project.

The legislature finally gave its approval for the project
after being lobbied by both the provincial administration and the
state-owned construction company.

The project which was funded from the province's budget, the
state budget and the Japanese government.

Deputy speaker Totok Daryanto also confirmed that factions
discussed the issue at a meeting on Wednesday evening.

"We agreed to let the legislature's commission A make the
necessary clarification over the issue," he said.

Yogyakarta Governor Sultan Hamengkubuwono X said he had
ordered the provincial prosecutor's office on Friday to
investigate the alleged bribery and also a case involving the
election of the province's deputy governor.

"We have let the attorney investigate the two cases," he told
reporters here on Friday.

Hemengkubuwono, also the Sultan of Yogyakarta, denied media
reports his administration had transferred Rp 150 million to
legislative members to smooth the second disbursement of Rp 9.5
billion to PT Adhi Karya in September last year.

The Yogyakarta provincial administration contributed Rp 19
billion to the JEC project. The province's share in the
construction project came from reserve funds.

Separately on Friday, the head of the provinces attorney's
office, Hantoro Sumarjo, said it had already formed a team to
investigate the alleged bribery behind the construction project.

It was also investigating the alleged money politics behind
the election of Paku Alam IX, the Sultan of Pakualaman, as
Yogyakarta's deputy governor.

"The team is already working now," he said.

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