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BPK discovers irregularities in Sumber Waras land procurement

An audit investigation by the Supreme Audit Agency (BPK) has found as many as six irregularities in the Jakarta administration’s purchase of 3

Dewanti A. Wardhani (The Jakarta Post)
Jakarta
Tue, December 8, 2015

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BPK discovers irregularities in Sumber Waras land procurement

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n audit investigation by the Supreme Audit Agency (BPK) has found as many as six irregularities in the Jakarta administration'€™s purchase of 3.7 hectares of land adjacent to Sumber Waras hospital in West Jakarta.

BPK reported that the irregularities began with the planning of the procurement and continued through to the payment and procurement stages.

The audit investigation, requested by the Corruption Eradication Commission (KPK), was submitted by the BPK to the KPK on Monday. BPK member Eddy Mulyadi Supardi said that after investigation, the BPK found that the irregularities '€œoccurred in a cycle'€.

'€œThe irregularities occurred in a cycle, from the beginning to the end of the procurement process,'€ Eddy told reporters after submitting the results at the KPK building in South Jakarta on Monday.

Last year, the city administration purchased a plot of land occupied by part of Sumber Waras Hospital to build a cancer facility and palliative care center. The hospital sits on two plots of land '€” the one recently purchased by the Jakarta administration and one belonging to the Sumber Waras Foundation.

In the BPK'€™s audit of the Jakarta administration'€™s 2014 financial report, the agency has included a report on the city'€™s Rp 755.69 billion (US$55.9 million) purchase of the land.

The BPK said that the price was inflated and the land should have been purchased for the same taxable value of property (NJOP) as surrounding buildings. The land, the agency report said, could have been bought for Rp 564.35 billion, which would have saved the city Rp 191 billion.

Former Jakarta Health Agency head Dien Emmawati, who now leads the Jakarta Family Planning, Women'€™s and Community Agency, said the agency had not recommended the particular plot as it had not been for sale.

Instead, she said, the agency had recommended that the city administration purchase a plot of land located on Jl. Kesehatan, adjacent to the Health Agency'€™s office in Central Jakarta and another plot on Jl. Sunter Permai Raya in North Jakarta.

The Jakarta chapter of BPK advised the city administration to cancel the purchase to avoid future legal issues. However, Ahok decided against the suggestion, prompting the central office of BPK to conduct further investigations at the request of the KPK. Ahok said the head of Jakarta chapter of BPK, Efdinal, was biased and had intentionally targeted him.

Eddy revealed that the six irregularities occurred during planning, budgeting, procurement team establishment, purchase, price fixing and hand over stages. He pointed out that investigation results suggest that there may have been state losses as a direct result of these apparent irregularities.

'€œHowever, the KPK has the last say,'€ Eddy said.

Previously in its investigation, the BPK had questioned a number of officials, including Dien as former Health Agency head, current Health Agency head Koesmedi Priharto, current Financial and Asset Management Board (BPKAD) head Heru Budi Hartono, current city secretary Saefullah, former Jakarta Development Board head Andi Baso Mappapoleonro, former City Council speaker Ferrial Sofyan and more recently Ahok himself.

Further, KPK deputy chairman Zulkarnaen said that the commission would continue to investigate the case in order to determine those involved in the irregularities.

Separately, Ahok said he would be ready were the KPK to summon him for questioning. However, he did not comment further but said that he would wait for the KPK to finish their investigation.

'€œKPK will determine whether or not there are state losses and corruption. If so, I'€™ll be ready to come if they summon me,'€ Ahok told reporters at City Hall Monday.

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