NGOs accuse MPR of graft
The Jakarta Post, Jakarta
A coalition of non-governmental organizations (NGOs) unveiled on Wednesday a possible corruption case involving the People's Consultative Assembly (MPR) secretariat general in accommodating 118 Regional Representative Council (DPD) members last year.
The coalition, Komplek, said their first investigation found alleged markups of prices, double taxation and violations of procedures in renting the Mercure Hotel and Residence apartment rooms from October 21 to December 31, which caused Rp 1.6 billion (US$173,000) in losses to the state.
Uchok Sky Khadafi, a member of Komplek, said at the Jakarta Legal Aid (LBH Jakarta) office that the Assembly's secretariat paid between Rp 1.6 million and Rp 3.8 million more than the normal price for Mercure rooms.
"If the secretariat paid the prices according to the initial offer, the state could have saved Rp 1.2 billion," said Uchok, who is the director of the Indonesian Forum for Budget Transparency (Fitra).
The newly inaugurated DPD members were accommodated in the hotel pending the disbursement of state budget money to provide housing for them. The remaining 10 DPD members own houses in Jakarta.
Komplek also discovered that the double taxation occurred because the secretariat added 12 percent in state treasury taxes to the prices offered, which normally include a 21 percent service tax.
"The policy has no legal basis and it cost the state Rp 483.5 million," said Yuna Farhan, one of the coalition's investigators.
Hayie Muhammad, another Komplek member, said the secretariat had violated a presidential decree on procedures for procuring materials or services by appointing Mercure without an open tender.
Deputy Assembly secretary general Eddy Siregar denied the allegations and accused Komplek of using inaccurate data in their investigation.
"We are willing to be responsible and accountable. Anyway, they are making a wrong accusation. The data given to Komplek by Mercure represented prices offered for one year of rent, while prices offered to us were for only two months. Of course they (Komplek) got cheaper prices," he told The Jakarta Post.
Mercure Director of Sales Ansori Abdullah said that on Feb. 7 a group of people came to him, who said they represented DPD members, and asked him for a price list of rooms. He said they also told him that the council wanted to rent the rooms for four years.
Eddy also said there was no double taxation because the secretariat was responsible for paying all the taxes and Mercure had offered prices excluding tax.
"The money went nowhere. It went back to the state treasury," Eddy claimed.
Abdul Malik Raden, head of the DPD faction in the Assembly, defended the secretariat's decision in selecting the apartment without a tender.
"I think we could consider it an emergency, at the time, because the DPD members had to check out of the Mulia Hotel and had no place to stay. Besides, not many apartments have 118 vacant rooms for two months," the representative from Aceh explained. (006)