T

he Corruption Eradication Commission (KPK) is investigating a graft case in Papua involving the regent of the newly established regency Supiori, Jules F. Warikar, and a businessman entrusted with developing official residences for local officials and a market building in the regency in 2007.

Supiori split off from Biak Numfor regency in 2003.

The antigraft body launched raids Monday at four places in Jakarta in relation to the case, to find more evidence.

"We declared the two main suspects last week, and now we are cracking down on four places related to suspect Suryadi Santosa," KPK spokesman Johan Budi told reporters Monday.

Suryadi is a director of PT MMJ, the company appointed by Warikar to carry out the housing and market building projects.

The commission deployed four teams at 11 a.m. Monday to raid the MMJ office on Jl. Balikpapan Raya No. 1 in Central Jakarta, and three houses at Taman Kebun Jeruk in West Jakarta, Jl. S. Parman in West Jakarta, and Komplex Simprug in South Jakarta, all belonging to Suryadi.

Johan said the KPK was trying to deepen the investigation into the case.

He added the two suspects were allegedly involved in the embezzlement of Rp 40 billion (US$3.73 million) through marking up the costs of construction materials and workers' salaries when carrying out the development projects, worth a total of Rp 100 billion, between 2006 and 2008.

"Warikar is also suspected to have appointed MMJ to carry out the projects, without holding a bidding process," he said.

He added the two men would be charged with violating Article 2(1) on enriching people, Article 3 on abuse of authority, and Article 5 on bribery.

This is the second case involving a high-ranking official in the province.

Previously, the KPK detained Yapen Waropen Regent Daud Solaeman Betawi for embezzling Rp 8.8 billion from the regency's 2008 budget.

Prosecutors have demanded a five-and-a-half-year sentence for the regent, who has since been suspended.

The case revolves around profit-sharing of land and building taxes with the central government, amounting to Rp 21 billion, and natural resources taxes with a total value of Rp 22.45 billion in 2006.

Daud, in office less than a year at that time, opened an account at Bank Mandiri and transferred the money from the administration's account at Bank Papua to his account.

He asked the bank to give him authority over the account, replacing Yapen Waropen secretary John Nussy and treasurer Rene F. Tansil, so he could freely transfer and cash in the administration's money to his personal account at Bank Mandiri.

He later took Rp 2.35 billion from the land and building taxes from January to May 2006 and Rp 2.48 billion from the taxes from February to October 2006.

Daud was also charged with enriching his subordinates, including Jimmy Mabel, who received Rp 130 million, and Christian Payawa, who got Rp 50 million. During a previous hearing in his trial, he also admitted giving Rp 4.2 billion to another subordinate, Chantele Maria.

Chantele initially received Rp 1 billion, then Rp 450 million and finally Rp 2.8 billion.