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Corruption Eradication Commission arrests suspects in railroad project corruption

Jakarta, Indonesia Sentinel – The Corruption Eradication Commission (KPK) conducted an arrest of suspected Corruption Crime in the form of receiving bribes by State Officials within the Directorate General of Railways of the Ministry of Transportation. That is related to the Construction of Railway Lines in the South Sulawesi, Central Java, West Java, and Java-Sumatra Regions T.A 2018-2022.

In the arrest, KPK secured a total of 25 people, namely 16 people secured in Jakarta and Depok, West Java, 8 people in Semarang, 1 person in Surabaya. KPK also secured a number of Evidence in the form of money amounting to around Rp2.027 billion, US$20,000, debit cards worth Rp346 million, and balances in bank accounts worth Rp150 million, totaling around Rp2.823 billion.

KPK then named 10 people as suspects, namely the Giving Party DIN Director of PT IPA, MUH Director of PT DF, YOS Director of PT KA Property Management until. February 2023, and PAR as VP of PT KA Property Management. Then as the Receiving Party HNO Director of Railway Infrastructure, BEN PPK BTP Jabagteng, PTU Head of BTP Jabagteng, AFF PPK BPKA South Sulawesi, FAD PPK Railway Infrastructure Maintenance, and SYN as PPK BTP Jabagbar.

The suspects were then detained for the first 20 days from April 12 to May 1, 2023. DIN is detained at South Jakarta Police Detention Center, MUH at Pomdam Jaya Guntur Detention Center, YOS and FAD at West Jakarta Police Detention Center, PAR and PTU at Central Jakarta Police Detention Center, HNO at KPK Kav. C1, BEN and AFF at the East Jakarta Police Detention Center, and SYN at the KPK Red and White Building.

In the construction of this case, the Directorate General of Railways of the Ministry of Transportation implemented several railway construction and maintenance projects in FY 2018-2022, including the Solo Balapan – Kadipiro – Kalioso Double Railway Line Development Project, the Railway Line Development Project in Makassar South Sulawesi, 4 Railway Line construction projects and 2 supervision projects in Lampegan Cianjur West Java, and the Java-Sumatra Level Crossing Improvement Project. In the project, it is suspected that there has been an arrangement for the winner of the project implementer by certain parties through engineering from the start of the administrative process to the determination of the tender winner.

For the winning of the parties in the implementation of the project, it is suspected that there has been a receipt of money by State Officers within the Directorate General of Railways of the Ministry of Transportation from private parties as project implementers, around 5 to 10% of the project value. Namely, PUT together with BEN received a sum of money from DIN related to the Solo Balapan – Kadipiro – Kalioso Double Railway Development Project worth around Rp800 million; AFF received a sum of money from DIN related to the Railway Development Project in Makassar, South Sulawesi worth Rp150 million.

Then SYN received a sum of money from MUH, DIN, and FAK, related to the implementation of 4 Railway construction projects and 2 supervision projects in Lampegan Cianjur, totaling around Rp1.6 billion. And HRN together with FAD received a sum of money from YOS together with PAR related to the Java Sumatera Crossing Improvement Project, worth Rp1.1 billion. From the results of the examination, the receipt of this money is suspected to be for the Holiday Allowance (THR).

From the inquiry of a number of examinees supported by a number of preliminary evidence, the receipt of money suspected of being bribes by the parties in the railroad procurement and maintenance project activities, so far is estimated to reach more than Rp14.5 billion. KPK is still developing and exploring further in the investigation process.

The Receiving suspects are charged with Article 12 letter a or Article 11 of Law Number 31 Year 1999 on the Eradication of Corruption as amended by Law Number 20 Year 2001 on the Amendment to Law Number 31 Year 1999 on the Eradication of Corruption in conjunction with Article 55 paragraph 1 to 1 of the Criminal Code. While the suspected givers, Article 5 or Article 13 of Law Number 31 of 1999 on the Eradication of Corruption as amended by Law Number 20 of 2001 on the Amendment to Law Number 31 of 1999 on the Eradication of Corruption in conjunction with Article 55 paragraph 1 to 1 of the Criminal Code.

KPK is concerned about corruption in railway construction projects that support public transportation. Corruption in this sector is not only detrimental to state finances, but also has the potential to depreciate the quality of railways that can endanger the safety of the public as service users. Integrity and anti-corruption principles must be a shared commitment between State Administrators and business actors, so that there is no conspiracy to violate legal provisions through corrupt practices.

Sentinel

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