Water firm's president fired for incompetency

Water firm's president fired for incompetency

JAKARTA (JP): Governor Sutiyoso fired the president of city
water company PDAM Jaya, Rama Boedi, saying the latter was unable
to resolve the company's internal problems.

Deputy Governor for Development Affairs Budihardjo Soekmadi
said Wednesday's dismissal occurred because Rama was too slow in
settling a prolonged dispute between employees of the company and
the firm's two foreign partners, PT Thames Pam Jaya (TPJ) and PT
Pam Lyonnaise Jaya (Palyja).

"Governor Sutiyoso believed Rama was not tough enough to
settle the prolonged dispute, which has been ongoing for more
than one month," Budihardjo said after a meeting with PDAM Jaya's
board of commissioners, which is led by the governor. Rama also
was present at the meeting at City Hall.

Budihardjo said Rama was one factor contributing to the
sluggishness of the renegotiation of the cooperation agreement
between PDAM Jaya and its foreign partners, but he refused to
elaborate further.

He said PDAM Jaya's chairmanship would be entrusted to a
caretaker team led by Ongky Sukasah, an assistant to the city
secretary for development affairs.

"Pak Rama will be assigned as a staff member to the deputy
governor for administrative affairs," he said.

Budihardjo denied Rama's dismissal was caused by the latter's
alleged involvement in protests by PDAM Jaya employees.

The protests, which began on April 8, were sparked by a salary
disparity between employees at PDAM Jaya's headquarters and those
working under Palyja and TPJ.

Rama recently granted a 45 percent wage and allowance increase
for employees working at PDAM Jaya's headquarters, causing
resentment among employees working under the two foreign joint
venture companies.

Of the 3,000 PDAM Jaya employees, 1,500 are assigned to work
under Palyja, 1,300 under TPJ and the remaining 200 work at PDAM
Jaya's headquarters.

However, an assistant to the city secretary who requested
anonymity, said the dismissal was caused by Rama's alleged
involvement in the protests.

"After being investigated by officials from the city
inspectorate office, there are indications that Rama was behind
the protests," the source said.

The indications of his alleged involvement include Rp 10
million in financial assistance given by Rama to the water
company's labor union to make union membership cards.

According to the source, both Rama and members of the firm's
labor union have the same interests.

"It has become a public secret that the cooperation agreement
trimmed much of the income of PDAM Jaya employees because under
the new management they could no longer make money on the side
from 'illegal projects,'" he said.
dispute.

Budihardjo said Sutiyoso instructed the caretaker team to
settle the prolonged dispute and get employees back to work.

He also said the caretaker team would lead the company until
PDAM Jaya's renegotiations with its foreign partners were
completed, possibly in July. (ind)