TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Court orders construction firm to return Rp 85b from rigged state projects
On Jan. 3, the Jakarta Corruption Court found NKE guilty of accepting Rp 240 billion in illicit money from eight construction projects -- including a state university hospital in Bali and the Jakabaring athletes village that was upgraded for the Asian Games, in Palembang, South Sumatra -- through rigged tenders with the help of former Democratic Party lawmaker Muhammad Nazaruddin.
Change Size
Corruption Eradication Commission (KPK) headquarters on Jl. H.R. Rasuna Said, Jakarta. (JP/Wienda Parwitasari)
T
he Corruption Eradication Commission (KPK) has accepted the verdict against publicly listed construction company PT Duta Graha Indah -- now rebranded as PT Nusa Konstruksi Enjiniring (NKE) -- in a graft case pertaining to several government infrastructure construction projects.
“We will execute the Rp 85.49 billion [US$6 million] restitution fee as ordered by the court. It will be better if NKE takes the initiative and transfers the fee immediately into the state coffers,” KPK spokesman Febri Diansyah said in a statement on Friday.
On Jan. 3, the Jakarta Corruption Court found NKE guilty of accepting Rp 240 billion in illicit money from eight construction projects -- including a state university hospital in Bali and the Jakabaring athletes village that was upgraded for the Asian Games, in Palembang, South Sumatra -- through rigged tenders with the help of former Democratic Party lawmaker Muhammad Nazaruddin.
NKE is the first company to be found guilty of corruption in the antigraft body’s history since the 2016 Supreme Court Regulation on directives in managing corporate crime, which paved the way for law enforcement officials to prosecute companies for crimes, including corruption.
The court also ordered the company to pay a fine of Rp 700 million and Rp 85.4 billion in restitution to the state. It also banned the firm from tendering for government projects over the next six month.
KPK prosecutors had demanded that the company should be fined Rp 1 billion, Rp 188.7 billion in restitution as well as a two-year government project tender ban.
“In punishing corporations, we focus on asset recovery. We also don’t want the tender ban to cause employees to lose their livelihoods,” Febri said.
Several individuals convicted in connection with the case include Nazaruddin and former NKE president director Dudung Purwadi.
