Over 10 executives of city firm probed over land sale
Over 10 executives of city firm probed over land sale
JAKARTA (JP): More than 10 current and former executives of
city property company PT Pembangunan Sarana Jaya have been
questioned by the City Inspectorate in connection with the sale
of 3.2 hectares of land at the Cibubur campsite in East Jakarta.
City administration spokesman Muhayat said on Thursday the
executives questioned included the company's directors and
related staff members.
The questioning began on Wednesday, he added.
The case came to the notice of the City Council and local
media earlier this month, following a report that the company had
sold the plot to a private company, PT Kurnia Philio Selaras, and
distributed some of the money received from the sale to its
employees.
Governor Sutiyoso has summoned Sarana Jaya's board of
directors to clarify the matter.
The secretary of City Council Commission B for economic
affairs, Dani Anwar, said a shopping center would be built on the
plot, valued at an estimated Rp 27.2 billion (about US$2.86
million).
Dani alleged the sale violated the company's mandate to lease
the site, and blamed the company for failing to consult with the
City Council before selling the land, which is a city asset.
The plot was being leased by the National Boy Scout Movement,
which used it as a parking lot.
Another councilor, Agus Darmawan of the National Mandate Party
(PAN) faction, said on Thursday the company reportedly
distributed about Rp 130 million of the Rp 2 billion down payment
from Sarana Jaya to its 90 employees.
"The company claims to have a huge amount of debt, but it
managed to distribute money to its employees. It does not make
any sense. The company should improve its finances first, and
also contribute more funds to the city's petty cash," Agus said.
Sarana Jaya accounted for Rp 228.42 million of the city's
petty cash last year, a figure it predicts to increase to Rp 275
million this year thanks to a number of successful projects.
Denial
Sarana Jaya's top management has denied any wrongdoing. "The
Cibubur site is part of our trading assets. We do not need to ask
for approval from the City Council to run our business," the
director of development affair at Sarana Jaya, Kemal Basha, said
on Thursday.
Kemal said about Rp 1.5 billion of the downpayment on the land
had been used to repay some of the Rp 34 billion in debt it has
accrued since 1992, while the remaining Rp 500 million was
allocated to complete the land certificates.
He said the company owns at least 70 hectares of tradable
land, apart from fixed assets such as office buildings in Budi
Kemuliaan and Cikini, both in Central Jakarta.
Sarana Jaya also has admitted to having sold the land to cover
its debts to city-run Bank DKI, Kemal said, adding that the
company would release the land once it completed the land
certificates.
Kemal revealed that Sarana Jaya also was offering three other
areas -- a 28-hectare plot of land in Pulo Jahe, East Jakarta, a
20-hectare plot of land in Pondok Kacang Barat, Bintaro, and 28-
hectares of land in Pondok Aren, Cileduk, Tangerag, for sales
this year.
He added that most of these properties, projected for housing
complexes, are in the process of certification.
"The sales are part of an effort to improve the financial
condition of the company," Kemal said.
According to the city's spatial plans, the 3.2 hectares of
land in Cibubur is designed for a city park, with coefficient
buildings limited to 20 percent with building no higher than four
stories.
"The private company is planning to construct a concert hall
with public facilities, including a supermarket. It is not
against the regulations," Kemal said.
PT Kurnia Philio Selaras executives refused to comment on the
issue. (07)