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Jakarta Housing Agency to Challenge Audit
Dofa Fasila | April 21, 2011

The North Jakarta Islamic Center, where the BPK says Rp 558 million worth of construction work was never completed. (AFP Photo/Adek Berry) The North Jakarta Islamic Center, where the BPK says Rp 558 million worth of construction work was never completed. (AFP Photo/Adek Berry)
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The Jakarta administration’s housing and government building agency on Wednesday said it would lodge a complaint over an audit that revealed losses worth Rp 8.4 billion ($975,000) from four construction projects.

The Supreme Audit Agency (BPK) in its 2010 report said the city had incurred losses of Rp 8.4 billion in its 2009 budget because contractors working on the projects had been paid up front for work that was never finished.

The BPK said the projects involved the North Jakarta Islamic Center, the East and South Jakarta mayors’ offices, and Boker Recreational and Sports Center in East Jakarta.

The audit revealed that initial losses had amounted to Rp 13.7 billion, but Rp 5.3 billion was returned to the city. The remaining Rp 8.4 billion however, had yet to be returned, the BPK said.

“We doubt the findings of the BPK audit because we have a different perspective when it comes to the calculations,” Agus Subardono, head of the housing agency, told reporters at City Hall on Wednesday.

“We request the BPK to do a second audit, do a recount. There were many other expenses from the construction projects that were not factored in by the BPK.

“We are going to lodge an official complaint with the BPK over their calculations. We believe we have done no wrong in disbursing funds from the budget.”

According to the BPK report, almost Rp 558 million was paid to contractors of a company identified only as P.P., for architectural work, air conditioning, plumbing and electrical wiring at the Islamic Center’s social and cultural facilities hall. However, none of this work was completed, the report said.

Contractors of a company identified as J.K.M.P, meanwhile, were paid Rp 1.93 billion — of the Rp 131.2 billion total cost of the project — to work on blocks C and D of the East Jakarta mayor’s office. But some architecture work and electrical wiring had not been completed, the report said.

Moreover, the BPK said J.K.M.P. was also allocated some Rp 2.36 billion to carry out work on the rear wing of the South Jakarta mayor’s office, but this was also never completed.

A further Rp 3.6 billion was paid to contractors employed by a company identified only as W.K. for work that was never completed at the Boker Recreational and Sports Center in Ciracas, the report added.