Wed, 25 May 2005

Prosecutors probe alleged graft in KPUD

Bambang Nurbianto, The Jakarta Post, Jakarta

The Jakarta Prosecutor's Office is investigating allegations of corruption in the Jakarta General Elections Commission (KPUD) involving around Rp 13 billion (US$1.36) during the legislative and presidential elections in 2004.

Head of the Jakarta Prosecutor's Office Rusdi Taher said on Monday that he had ordered the assistant for special crimes to start investigating a report by the City Council's Commission A for legal and administrative affairs.

He said prosecutors would use Commission A's report as initial evidence to make further investigations into those involved in the case.

He stressed that KPUD chairman Muhammad Taufik was the most responsible person in the case because all spending in the elections commission required his approval.

He, however, also stressed that other KPUD members would also be investigated.

He said the interrogation would begin next week.

"We will summon KPU Jakarta chairman Muhammad Taufik some time next week for interrogation," Rusdi said after signing an agreement with city-owned enterprises.

Under the agreement, the prosecutors's office will become legal advisor to city-owned enterprises should they be involved in civil lawsuit with a third party.

Commission A, which investigated the alleged misuse of funds by KPUD members during the 2004 elections, said earlier it had found irregularities resulting in state losses amounting to Rp 13 billion.

It alleged the KPUD had failed to pay Rp 4.2 billion in income and value-added taxes of its members.

It also discovered questionable tenders and an alleged mark-up in the purchase of 180,000 vests for Rp 12 billion (or Rp 66,000 each). That price was far higher than the market price of Rp 25,000 per vest, the commission said.

The KPUD has also been accused of marking up the rent on three houses it uses for offices in Kepulauan Seribu regency.

According to a report from the KPUD, the rent of the three houses totaled Rp 170 million a year. However, it is believed the commission only paid Rp 25 million a year to the owners of the houses.

Apart from distributing its report to journalists, Commission A also submitted it to the council leaders to be approved as a council document.

Council speaker Ade Surapriatna said earlier he had conveyed the finding to Governor Sutiyoso and asked him to hand it to the relevant agencies, including the Corruption Eradication Commission (KPK), prosecutors' office and the City Audit Agency (Bawasda).

Sutiyoso had not conveyed the council's findings to other agencies, however, prosecutors had begun investigating the case.

Commission A member Thamrin stressed that law enforcers could follow up the commission's findings without any reports from other agencies because the report had become a public document.

Sutiyoso said on Monday he supported the investigation by prosecutors, but added that Bawasda would also investigate the elections commission.

Rusdi stressed that his office would not depend on the result of Bawasda's work.

Rusdi said his office was coordinating with the KPK to investigate the case. He also said that he had told Governor Sutiyoso about the investigation.