Sat, 28 Aug 2004

Police deny allegations they put markups on Aceh projects

Abdul Khalik, The Jakarta Post/Jakarta

The police denied on Friday charges leveled by a joint monitory team that they embezzled billions of rupiah from material procurement and construction projects in Aceh while the province was under martial law.

"We found no markups in the projects. We have submitted the results of our investigation to the Coordinating Ministry for Political and Security Affairs and the KPK," National Police chief Gen. Da'i Bachtiar said in reply to questions on Friday.

He said it was now up to the Corruption Eradication Commission (KPK) to determine whether markups did occur in the projects.

The joint monitoring team, known by its Indonesian acronym TMP, is investigating how Rp 10 trillion (US$10 million) in government funds was spent during one year of martial law in Aceh. The martial law was downgraded in May to a state of civil emergency.

The funds were channeled through various parties, including the police (Rp 508.8 billion), the military (Rp 1.9 trillion) and the education and transportation agencies.

Da'i said his office carried out a preliminary investigation after being notified by the monitoring team last month of the alleged markups.

He said a team chaired by former finance minister Mar'ie Muhammad found differences between the prices of materials stated in the budget and the actual prices of the materials bought. However, after checking the quality of the materials the team decided the prices were appropriate.

Following the end of martial law in May, the province was led by a civil emergency administration under Governor Abdullah Puteh.

Since then the province has been dogged by corruption allegations involving both local government and legislative members. Puteh was named a suspect by the KPK last month over a suspected markup in the Rp 4 billion purchase of a helicopter, and is being investigated by the police over a Rp 30 billion generator purchase.

A number of councillors from the regency and provincial levels have also been named suspects by the police or local prosecutors over the misuse of state funds.

KPK chairman Taufiequrrachman Ruki said on Tuesday a total of Rp 2.7 trillion had been embezzled from 68 projects run by various government agencies. The monitoring team was formed by the martial law administrator.

KPK member Erry Riyana Harjapamekas said the KPK was now investigating the cases.

"We are yet to determine the state losses in the projects of each individual agency. We have not yet found any indications of markups in police projects. They have submitted the results of their internal investigation and we are now studying the report," Erry told The Jakarta Post on Friday.

Security has improved in Aceh but little has been done to resettle refugees, try human rights abusers or improve the people's welfare. Analysts have blamed rampant corruption as the reason for these failures.