Markus Junianto Sihaloho, Jakarta – The House of Representatives' Secretariat says it will inject another Rp 34 billion ($3.8 million) into a project to renovate legislators' homes, despite allegations of heavy markups in the project.
The House's Household Affairs Committee (BURT) initially approved a total of Rp 445 billion for the project: Rp 335 million for the renovations and the rest to build 10 new homes, a mosque and a school.
However, the Indonesian Forum for Budget Transparency (Fitra) said in October that of the Rp 717 million to be spent on each house, the contractors had spent just Rp 152 million each, with the remainder unaccounted for. Also in October, the contractors requested a 10 percent budget increase and an extension of their January 2011 deadline to March.
On Friday, House Secretary General Nining Indra Saleh said she had approved an additional Rp 34 billion for the contractors and had demanded the project be completed by the end of December.
"The extra funding will be used for additional improvements to the houses," she said, adding the improvements had been requested by legislators after they inspected the homes.
Meanwhile, the BURT said it would not object to the budget increase, although BURT chairman Pius Lustrilanang said the secretariat had not informed him of the approval. He added the BURT had decided to let the secretariat make all decisions related to the renovation project.
However, Uchok Sky Khadafi, advocacy coordinator for Fitra, warned that issuing the additional money would only invite further misappropriations. He also said the decision to release the funds should not have been made by the House Secretariat, but rather by the BURT, as mandated by the 2003 State Finance Law and the 2009 Legislative Bodies Law.
"It's the BURT that has the authority to decide whether to approve a budget extension, not the secretariat," he said. "Has the secretary general presumed to act in place of the BURT in this case?"
Uchok said Fitra had filed a complaint with the Corruption Eradication Commission (KPK) over the alleged markups.
The Rp 445 billion contract was initially awarded to state construction firm Adhi Karya, which then subcontracted it to another state-owned builder, Pembangunan Perumahan.
PP again subcontracted the project, this time to nine private firms, which Fitra said had spent just Rp 152 million on each house, for a total of Rp 75 billion, leaving Rp 260 billion of the budget unaccounted for.