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Graft suspect linked to house building bidder

Source
Jakarta Globe - April 25, 2011

Anita Rachman – Corruption watchdogs have stepped up their attacks on the controversial legislative building project after reports linking a graft suspect to a private company bidding on the project.

Mohammad El Idris, one of three people named a suspect by the Corruption Eradication Commission (KPK) last week for alleged graft connected to the Southeast Asian Games, is reportedly an executive at Duta Graha Indah.

According to budgetary watchdog Fitra, Duta Graha is the only privately owned construction company to pass the initial qualification phase of bidding for the House of Representatives building project. Duta Graha is known for projects such as the Grand Indonesia complex and the Jakarta Stock Exchange building.

Fitra previously raised questions over the qualifications of Duta Graha, which the watchdog said it had reported for not conducting an environmental impact analysis (Amdal) for a construction project in Riau.

Duta Graha is also constructing the SEA Games athletes' village in Palembang, the capital of South Sumatra. While it is suspected that the SEA Games graft case is related to the athletes' village, the KPK has still not confirmed this.

Calls and messages to Duta Graha officials on Sunday were unanswered.

Ade Irawan, from Indonesia Corruption Watch, said that from the very beginning there were indications of budget markups in the Rp 1.13 trillion ($130 million) House building project.

"If it could happen in the Sports Ministry, it could happen anywhere," Ade said, referring to the SEA Games corruption case. "The plan must be stopped. Now we can smell the stink."

He said research by the ICW on various government construction projects showed how companies attempted to bribe their way to winning the projects.

The House speaker and chairman of its Household Affairs Committee (BURT), Marzuki Alie, told the Jakarta Globe that he had heard of the allegations. "But we cannot directly remove the company from the tender process. It is not our domain, it is the House Secretariat's," Marzuki said.

Sumirat, a House Secretariat official overseeing the building project, could not be reached for comment.

BURT deputy chairman Refrizal, from the Prosperous Justice Party (PKS), said the House would take this latest development seriously. He said the House Secretariat must be careful because graft was a serious matter.

"As far as I understand, the company is a private one," he said. "Personally, I think the House should go with a state-owned constructor, so the profit would flow back to the state." "They have played [a game] with the [Sports] Ministry, that's serious," he added.

El Idris was named a suspect on Friday along with the Sports Ministry's secretary, Wafid Muharram, as well as a broker identified as Mirdo Rosalina Manulang. Wafid is accused of accepting Rp 3.2 billion in checks from El Idris through Rosalina.

"We suspect the checks were given in connection with the construction of the athletes' village for the upcoming SEA Games in Palembang," said Johan Budi, a KPK spokesman.

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