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Nazaruddin says up to 45% skimmed off contracts

Source
Jakarta Globe - August 28, 2013

Rizky Amelia & Markus Junianto Sihaloho – The mark-up in the contracts for government projects could be nearly half of the projects' real values, according to former Democratic Party treasurer Muhammad Nazaruddin, who is serving a seven-year prison sentence for graft.

Nazaruddin previously said he would cooperate with the Corruption Eradication Commission (KPK) to expose 30 graft cases involving lawmakers and government officials.

"The markup is between 10 percent and 45 percent," Nazaruddin said through his attorney Elza Syarief who was at the KPK's Jakarta office on Tuesday.

Elza said corruption typically began at the planning stage and that government officials and lawmakers would seek to turn projects into personal goldmines. She added that calculations of lawmakers' and government officials' shares would be made once the projects were approved.

"Calculations are made by the businessmen. They will count the difference [after their margin] that will be distributed proportionally between government officials and lawmakers," Elza said.

The lawyer said her client is now in a position to support the KPK in its efforts to snare former colleagues involved in corruption cases.

Nazaruddin previously accused several lawmakers of involvement in wrongdoing in the procurement of MA60 aircraft for state-controlled airline Merpati, as well as in tax office and Supreme Court building projects and an e-KTP electronic identity card procurement project.

Before his arrest in 2011 Nazaruddin threatened to reveal details of fellow lawmakers' involvement in corruption, but he fled to Singapore before a warrant could be served.

After weeks on the run he was tracked down to Colombia where he traveled under a false name. He was finally jailed in April 2012.

Despite being behind bars, Nazaruddin continues to wield enormous influence with reports he has set up more than 20 new companies to primarily bid for government contracts. He reportedly earlier this year expressed a desire to leave prison as one of Indonesia's richest people.

In another high-profile case involving leading Democratic Party figures, a Supreme Audit Agency (BPK) audit released last week alleged Rp 7.3 billion ($667,000) in funds from state-controlled developer Adhi Karya landed in the hands of several members of the House of Representatives in 2010 and 2011, when discussion of West Java's Hambalang sports center construction took place.

I Gede Pasek Suardika, chief of the House Commission III, which oversees legal affairs, called on the KPK to investigate the issue.

"Did these funds really get to them or were they merely sent in their names? This is important so the public will know the individuals who are 'playing around' and those who are doing their job and showing responsibility," Pasek, a member of the ruling Democratic Party, said on Sunday.

Deputy House Speaker Pramono Anung Wibowo said the BPK conducted its audit, its second on the matter, as instructed by the legislature and other law-enforcement institutions, including the KPK.

"This second audit can be used as an initial reference to investigate the Hambalang case further," the Indonesian Democratic Party of Struggle (PDI-P) legislator said on Monday. "The initial information is there. It's better for this to be immediately finished."

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