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)