PDAM Jaya sued over cooperation project
PDAM Jaya sued over cooperation project
JAKARTA (JP): Seventeen lawyers filed a lawsuit against city
governor Sutiyoso, the city-owned water management firm PDAM Jaya
and nine other parties over a cooperative agreement on water
management at Central Jakarta District Court on Friday.
The lawyers, who said they were members of the Association of
Indonesian Reform Era Lawyers, asked the court to revoke the
agreement between PDAM Jaya and two foreign companies --
Britain's Thames Water Overseas Ltd. and the French company Suez
Lyonnaise des Eaux.
"The agreement only benefits the foreign companies and burdens
PDAM Jaya and Jakartans in general," the lawyers' spokesman Sitor
Situmorang said.
Besides representing themselves, the lawyers claimed to be
representing the city water contractors' association (Akaindo)
and the public.
The nine other parties facing legal action include PT Garuda
Dipta Semesta (GDS), PT Kekar Pola Airindo (KPA), former public
works minister Radinal Moochtar, former Jakarta governor Surjadi
Soedirdja, former president Soeharto's oldest son Sigit
Hardjojudanto and businessmen Anthony Salim and Fachry Thaib.
The plaintiffs said the agreement was illegal since the
companies were appointed directly and not after a competitive
bidding process as required by presidential decree No. 16/1994.
They said the foreign companies had allegedly gained a total
of Rp 240 billion (US$20 million) in profits from the agreement
in the period between June 6 last year when the agreement was
signed and Sept. 6 of this year.
"The profits belong to Jakartans and should be returned to
them," the plaintiffs said.
They also asked the court to order the defendants to pay Rp
100 billion for immaterial losses.
Both Thames Water and Suex Lyonnaise resumed their cooperative
agreements with PDAM Jaya recently after the Jakarta
administration revoked earlier agreements entered into in joint
ventures with PT KPA and PT GDS shortly after Soeharto resigned
as president on May 21.
The deals to supply water to East Jakarta were canceled on the
grounds that the contracts were not awarded fairly.
KPA, which is owned by former president Soeharto's eldest son
Sigit Hardjojudanto, formerly cooperated with Thames Water.
GDS, a subsidiary of the giant Salim group owned by tycoon
Soedono Salim, cooperated with Suez Lyonnaise. (jun)