Indonesian Political, Business & Finance News

Parks official flatly denies BPK reports

| Source: JP

Parks official flatly denies BPK reports

Bambang Nurbianto, The Jakarta Post, Jakarta

The head of the City Parks Agency, Mauritz Napitupulu, rejected
on Tuesday a report by the Supreme Audit Agency (BPK) that it had
found irregularities in the agency worth Rp 11.36 billion related
to 2002 budget spending.

Mauritz said that his office would not follow up on the BPK
findings because no discrepancies had occurred in the agency's
projects.

"I don't understand why the BPK released the report ... it was
a report made without any confirmation from us," Mauritz told the
media at City Hall.

The BPK findings were based on the audit of the City Parks
Agency's Rp 83.88 billion spending for the year.

The BPK categorized the Rp 11.36 billion of irregularities
into city losses of Rp 908.74 million, money lost due to
inefficiency Rp 440.3 million and other irregularities of more
than Rp 10 billion.

As an example, the BPK audited the Rp 8.85 billion cost of
fencing in the National Monument (Monas) Park and found that the
project was tendered through unhealthy competition.

It says that companies participating in the tender and the
tender committee at the City Parks Agency had arranged the
outcome of the tender. It also questioned why two of the three
winners of the project came from companies owned by the same
person.

Such a bidding mechanism violated a joint decree signed by the
minister of finance and head of the National Development Planning
Agency on technical guidance for the procurement of goods and
services at government agencies.

The BPK also found the quality of materials used in the
project was not the same as the stated specifications. According
to the BPK, the total value of irregularities in the Rp 8.85
billion Monas fencing project was Rp 1.14 billion.

Other irregularities were also found by the BPK in the
upgrading of a green zone along Muara Angke River, the
procurement of park equipment and in a project at the agency's
breeding center.

According to Mauritz, the BPK report was a result of
incomplete work that lacked accuracy. "I think the BPK worked in
haste as the House of Representatives was waiting for its
report," Mauritz said.

Most officials in the city administration played down the BPK
report, which revealed total irregularities of Rp 820 million in
eight city administration institutions and four city-owned
companies.

Governor Sutiyoso has criticized the BPK report, calling it
illogical and slanderous.

The eight institutions are Central Jakarta and North Jakarta
mayoralties, the City Land Transportation Agency, City Education
and Training Office, City Tourism Agency, City Population and
Civil Registration Agency, Religion and Education Office and the
City Parks Agency.

The four city-owned companies are the PT Bank DKI, PT Food
Station Tjipinang Jaya (a rice market), city property company PT
Jakarta Propertindo and Ragunan Zoo.

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