Mayor denies compensation irregularities

JAKARTA (JP): North Jakarta Mayor Suprawito denied yesterday mayoralty officials had committed irregularities when distributing land compensation to Ancol residents.

Suprawito denied officials got residents to sign blank receipts when evacuating the 4.5-hectare plot owned by the state Railway Company Perumka.

Vice Governor Idroes said he would order the mayor to investigate the case.

"The city will impose firm action if officials are found to have got residence to sign receipts which did not bear the amount of money given to the residents," Idroes said.

The City Council's Commission A for administration inspected the North Jakarta mayoralty office Wednesday after 596 families owning 700 houses in the subdistrict complained.

The legislators alleged some officials had persuaded residents to sign blank receipts so they would not know how much compensation they should have got.

The allegations have raised suspicions officials had cheated each resident of Rp 200,000 compensation. Compensation payments ranged from Rp 500,000 to Rp 700,000.

The commission's secretary, Abdoel Hamid Notowidagdo, said the embezzlement cost the government over Rp 100 million.

Abdoel said some officials reportedly harassed and intimidated residents to move off the land.

The commission also found the district's public security officials had issued the compensation money. They are not allowed to issue compensation.

Suprawito said public security officials involvement was simply because the security office was responsible to the mayoralty.

Kusaeni, head of the city public security office, said he would help the mayor clarify the case.

Another alleged procedural violation was paying residents without the district chief's authorization, Abdoel said.

Challenging the allegation Suprawito said a meeting was held with all involved parties where agreement over the compensation and procedures was reached. (02)