Banyumas Police have named Dedi Firmansyah a suspect in a corruption case worth Rp 13 billion (US$1.31 million), for the misuse of provincial administration funds in Cilacap, Central Java, following a month long investigation.
Dedi is a director of CV Indosoft Jakarta Timur, located in Jakarta, according to the Banyumas Police's head of crime and investigation unit Comr. Syarif Rahman.
"We named Dedi Firmansyah a suspect after learning his company was fake," Syarif told The Jakarta Post on Friday.
Indosoft, according to Syarif, is one of six fake companies, of seven Jakarta-based companies that won a public computer procurement tender for an Internet project in 284 villages in Cilacap.
Only one company, PT Hexacom Jakarta, was legitimate he said.
He said all addresses recorded for the six companies existed, but none of the names and business fields matched their tender applicantion documents.
"We have questioned executives and employees from the suspicious companies," said Syarif.
He added the police had previously investigated five companies listed in the public tender document, but it turned out the computer procurement committee had forged their names.
The case emerged when each village in the regency was allocated to Rp 100 million for a village development program in 2008.
However, each village received only Rp 52 million.
The local administration said they used the remaining Rp 48 million for each village, for Internet procurement under the village administrative information management program (Simpemdes).
The Internet system, however, never materialized.
Instead, every village received two personal computer worth Rp 5 million.
As a result, dozens of village heads filed complaints with Banyumas Police.
Syarif said the police had also questioned 103 village heads and 21 district secretaries, out of total 24 districts involved in the case.
"We will continue our investigation of regency administration officials next week," he said, adding that more than 10 officials from all administrative levels were potential suspects in this case.
Deputy Regent Tatto Suwarto Pamuji said he let the police handle the case using the proper legal procedures.
"Regional administrative officials should not exchange accusations *in regard to the case* at this early stage," Tatto said.
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