Reform team uncovers land scam

JAKARTA (JP): The city administration's reform team is investigating gross irregularities in the acquisition of 120 hectares of land near Bogor by the city-owned property development company PD Pembangunan Sarana Jaya and Bank DKI.

Deputy Governor for development affairs Abdul Kahfi, who heads the team, told the media that the case was still under investigation and that no officials had yet been named as suspects.

Kahfi said the land in Sawangan, Bogor, was bought from a private firm.

He refused to name the firm or its executives and did not disclose when the transaction took place.

Preliminary investigations by the Development Finance Comptroller (BPKP) revealed that the firm received Rp 12 billion in exchange for the 120-hectare site.

However, investigators' suspicions were aroused when they attempted to trace the previous owners of the land.

"So far, we have only been able to trace the owners of 9.6 hectares of the (supposed) 120 hectares the city has paid for, and documents verifying legal ownership could only be produced for a mere 4.3 hectares," Kahfi said.

He said a massive housing complex for city officials was to have been developed on the site.

BPKP are insistent that the case must be investigated and brought to court because the money has already been transferred out of the state budget.

"PD Pembangunan Sarana Jaya and Bank DKI have already filed a lawsuit against the firm (that sold the land). Legal proceedings are now underway," he said.

Kahfi said the city authorities would not hesitate to remove any high-ranking officials implicated in any swindle from their posts.

"We will take stern measures against any guilty high-ranking officials if any scam is uncovered," he said, citing the recent corruption scandal in the Jakarta Logistics Agency (Dolog Jaya) which lead to the dismissal of some the agency's top officials.

Amarullah Asbah, the chairman of Commission C for financial affairs, complained on Tuesday that Kahfi's team had yet to publicly announced the findings of its investigations or take any steps toward bringing corrupt officials to account for their misdeeds.

"All of us are determined to eradicate corruption and we all want clear action to be taken.

"We, the councilors, have yet to receive any reports or information from the team," the Golkar councilor said. (ivy)