Officials quizzed over markup in car purchase
Officials quizzed over markup in car purchase
JAKARTA (JP): City administration secretary Fauzi Bowo said on
Friday several city officials had been questioned in connection
with a reported markup in the purchase of 55 Hyundai Accent
sedans for city councillors.
"They (the officials) were questioned recently at the City
Inspectorate Office over the alleged markup," Fauzi said. He
refused to identify the officials.
He said he did not know how much each sedan cost the city
administration, but admitted to having been involved in the
purchase of the vehicles.
As the administration's secretary, Fauzi was responsible for
all correspondence by the governor in the process of purchasing
the cars.
The city administration purchased the sedans in mid-February
at the request of City Council Speaker Edy Waluyo. Criticism
greeted the purchase, with many speculating it was aimed at
winning the hearts of councillors ahead of the governor's
accountability speech at the end of this month.
The Hyundai dealer set the on-the-road price for a Hyundai
Accent at Rp 105 million (US$10,606).
The city administration announced the sedans were purchased
off-the-road at Rp 106 million each, bringing the total cost of
the purchase to Rp 5.8 billion. The off-the-road price exempts
the city administration from taxes for vehicle ownership and
changes in vehicle ownership.
City councillor Tjuk Sudono of the National Mandate Party
(PAN) said he suspected the price of the cars had been marked up.
He pointed to the conflicting accounts given by the dealer and
the city administration.
"Marking up prices is a habit in the city administration. I
have just found out that the specifications of my car are
different from what the city administration said," Tjuk said.
He also said the City Sanitary Agency had marked up the price
of an excavator that it bought last year. The agency paid Rp 1.5
billion, although the market price was Rp 1.1 billion.
Despite the irregularities, Tjuk said he had no plan to return
his car.
Several councillors also dismissed the possibility of them
returning the cars, saying they were afraid the vehicles would
just be given to city officials.
City administration spokesman Muhayat denied on Friday the
price of the vehicles was marked up.
He said the city administration had spent Rp 460 million less
than what the budget allocated for the purchase of the cars. The
vehicles were bought using money from the 2000 budget.
City Property Office head Husin Djawas said so far no
councillors had returned their vehicles.
"The cars can be returned to the council's secretary, who
would hand them over to the governor," Husin said.
He said of the 55 sedans, 12 remained in his office's
warehouse because the councillors they were intended for had not
returned from the haj in Saudi Arabia. (jun)