he Jakarta administration is hoping that the money spent on the purchase of a plot of land in West Cengkareng, West Jakarta, will soon be returned to city's treasury. Weak legal basis for procurement might leave the purchase null and void.
The city's legal bureau has claimed that the purchase process last year was not carried out in accordance with the 2012 law on land procurement, citing that the official land deed or PPAT was not seen, legal bureau chief Haratua Purba said on Thursday.
“Based on investigation, the transaction was based on a Notary deed not PPAT as required by the law. Therefore, the sale and purchase agreement can be null and void,” he told journalists at the City Hall.
The city reportedly plans to void the purchase based on the alleged fraud conducted by Toeti Noezlar Soekarno, who claims to be the rightful owner. The bureau has reported the alleged case of fraud to the National Police. Should the court decide the agreement is null and void, the city can reclaim the total Rp 648 billion (US$48 million) spent on the land purchase, Haratua said.
The legal bureau is investigating the land purchase by city's Housing and Government Building Agency, who aimed to use the land to build low-cost apartment buildings. The bureau found the purchase to be suspicious.
The Supreme Audit Agency (BPK) suspected a state loss based on the procurement, citing that the city administration had spent billions of rupiah to purchase its own land. The case also revealed the poor management of city assets, raising criticism from city councilors and the general public. (rin)
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