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KPK widens investigation into graft-ridden Hambalang project

Source
Jakarta Post - April 27, 2013

Hans Nicholas Jong, Jakarta – The Corruption Eradication Commission (KPK) has decided to expand its probe into the graft-ridden Hambalang sports complex construction case by investigating the procurement of equipment in the project.

"Previously we investigated the construction process of the sports complex, now we are also investigating the equipment procurement process," KPK spokesperson Johan Budi told a press conference at the KPK headquarters in Kuningan, South Jakarta, on Friday.

He said the KPK had begun its investigation of the Hambalang equipment procurement process a while ago and that it had questioned several people involved. According to Johan, the antigraft body suspected the procurement process was also rife with irregularities.

A source within the KPK said the antigraft body was suspicious about the equipment procurement process because it started well before the construction of the sports center was even finished.

According to an investigative audit by the Supreme Audit Agency (BPK), the Hambalang sports complex began as a modest single-year project with a budget of Rp 125 billion (US$12.8 million) before turning into a multi-year project worth Rp 1.2 trillion.

Adding the procurement of equipment – worth Rp 1.3 trillion – the project budget ballooned to Rp 2.5 trillion, causing massive state losses of Rp 243 billion.

Johan said the KPK would use the BPK report in its investigation. The KPK is still proceeding with its investigation into the Hambalang construction project.

The commission planned to summon former Democratic Party chairman Anas Urbaningrum, who has been named a suspect for allegedly accepting kickbacks from state-owned construction company PT Adhi Karya in return for him helping the company secure the tender.

"Anas will be summoned as a witness for former youth and sports minister Andi Mallarangeng," Johan said. This will be the first time Anas is questioned as a witness over the Hambalang graft case since he was named a suspect in late February this year.

On Friday, the KPK questioned Democratic Party lawmaker Mirwan Amir, the former deputy chairman of the House of the Representatives budgetary committee, as a witness in the case.

Former Democratic Party treasurer and graft convict Muhammad Nazaruddin previously accused Mirwan, along with other members of the budgetary committee, of accepting a total of Rp 20 billion from Mahfud Suroso, director of PT Duta Sari Citralaras, another subcontractor involved in the Hambalang project.

Nazaruddin also claimed that Andi and Anas received Rp 20 billion and Rp 50 billion respectively, while members of the House's Commission X overseeing education and sports received Rp 10 billion.

After being questioned for three hours, Mirwan denied all of the allegations. "I have explained to the KPK investigators that I know nothing about the project. I am not involved at all," he said.

So far, the KPK has named four suspects in the case – Dedy Kusdinar, the chief of the Youth and Sports Ministry's financial and internal affairs bureau, Teuku Bagus Mohammad Noor, the director of PT Adhi Karya, Andi and Anas.

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