Tue, 27 Apr 2004

NGOs urge Batam to probe markup

BATAM, Riau: Several non-governmental organizations have demanded that the Batam Prosecutor's Office thoroughly investigate an ongoing allegation of corruption involving Rp 2.1 billion (US$244,186) at the local legislature.

The fund was reportedly spent on the procurement of 45 Pentium IV computers from private telecommunication firm PT Indosat for the Batam Council.

Prosecutors have been investigating the scandal since it surfaced after the a councillor of the National Mandate Party (PAN) faction reported the highly questionable allocation of Rp 2.1 billion for the computer procurement project to Batam Mayor Nyat Kadir.

The councillor had broached the issue at a meeting but was rebuffed. Subsequently carrying out an independent calculation based on the model's retail price, the councillor reported his suspicions upon discovering that the project budget was several times the total cost for 45 Pentium IVs. -- JP