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n investigation conducted by the Surabaya Development and Finance Surveillance Agency (BPKP) has uncovered an alleged graft case resulting in losses up to Rp 4.1 billion in the development of tollgate on the way to the Juanda International Airport.

Based on the audit's results, which were released to the Surabaya Police at the end of October, the police have named airport management company PT Angkasa Pura I's commercial and business development director, Y.A.Y. Supardji, and PT Sido Makmur Maju director, Johan T.S, as suspects in the case.

"Both are charged under the 1999 law on corruption," head of the Surabaya Police's investigation and crime unit Adj. Sr. Comr. Syahardiantono said recently.

Syahardiantono said his office needed time to analyze the contents of the audit before the suspects were named in this alleged graft case. "Such investigations are necessary if we are to develop a solid case before we move forward to a trial stage."

The audit revealed irregularities in the development stage of the tollgate. This includes the direct appointment of PT Sido Makmur Maju as the project developer.

As the developer, the company was also granted the privilege of having the most strategic commercial space in the airport compound, which was later sold to a cigarette company for Rp 14.05 billion.

The irregularities were revealed through a working order letter (SPK) that stated PT Sido Makmur Maju paid less than the other companies that won bids to develop commercial spaces.

While the companies that won the bid had to pay over Rp 500,000 per square meter per month, PT Sido Makmur Maju was only charged Rp 85,000 per square meter per month.

Other signs of irregularities include the physical development of the tollgate which was done prior to the issuance of the SPK. The work order was issued in March 2007, but the development of the project had already started in Nov. 2006.

The investigations also revealed a mark-up in the budget from Rp 4.1 billion to Rp 4.3 billion, as well as a discrepancy between planned and actual specifications.

The police, according to Syahardiantono, had actually been investigating the case for the past year.

They have also questioned 27 witnesses, including employees of PT Angkasa Pura I, BPKP staff, experts ,and the seven companies involved in the project, he added.