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.

Jakarta Post

Former Waskita Karya officials arrested for alleged embezzlement

  • Moch. Fiqih Prawira Adjie

    The Jakarta Post

Jakarta   /   Fri, July 24, 2020   /   03:35 pm
Former Waskita Karya officials arrested for alleged embezzlement The Corruption Eradication Commission (KPK) headquarters on Jl. H.R. Rasuna Said, Jakarta. (JP/Wienda Parwitasari)

Moch. Fiqih Prawira Adjie
Jakarta

The Corruption Eradication Commission (KPK) has detained five former employees of state-owned construction firm Waskita Karya in connected with appropriations for several fictitious projects between 2009 and 2015.

Fathor Rachman, who oversaw the construction of bridges, docks and other civil projects for the company between 2011 and 2013, and Yuly Ariandi Siregar, the financial and risk department head for Fathor’s division between 2010 and 2014 were among those arrested.

The antigraft body named both former employees suspects in December 2018.

Investigators named three additional suspects on July 13: Desi Arryani, a Waskita Karya civil engineering division head and two of her subordinates, Jarot Subana and Fakih Usman.

KPK chairman Firli Bahuri said the antigraft body would detain the five suspects in separate detention centers for 20 days.

“We suspect them of corruption, committed through fictitious projects under Waskita Karya’s second division between 2009 and 2015. The illicit practices caused about Rp 202 billion [US$13.89 million] in state losses,” Firli said during a press briefing on Thursday.

Read also: KPK nabs 11 former North Sumatra councillors for alleged bribery involving ex-governor

He alleged that Desi had approved several fictitious projects for the firm’s subcontractors in 2009 and that she had later organized an internal meeting to determine the funds allocated to the subcontractors for those projects.

The five suspects signed contracts to allow the firm to disburse the funds but allegedly kept the money for themselves.

Firli added that graft busters had identified 41 fictitious contracts in 14 projects under the division, involving smaller construction companies such as PT Safa Sejahtera Abadi, CV Dwiyasa Tri Mandiri, PT MER Engineering and PT Aryana Sejahtera.

The five suspects allegedly used the money to pay for several expenses outside of the company’s budget, including purchases of foreign currency and personal spending.

“We hope all parties working on projects funded by the state budget adhere to the strict principles of good corporate governance,” said Firli, reaffirming the antigraft body’s commitment to preventing and prosecuting corruption.