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)