2013-02-02

0 Hambalang Subcontractor Levels Blame at Adhi Karya

Global Daya Manunggal director Herman Prananto said that appointing state-owned Adhi Karya as the contractor in the Hambalang sports center project pushed down the prices for all subcontractors, making it near impossible to earn a profit. “It’s true that I am the subcontractor. But the price [margin] was very minimal.I was pressured to [accept] 15 percent below the price that I offered,” Herman said after he was questioned as a witness by the Corruption Eradication Commission (KPK) on Friday. 

Herman said that other subcontractors that were affiliated with Adhi Karya were also forced to drop their prices. Adhi Karya wanted to garner a high profit by giving the subcontractors very thin profit margins, Herman said, and that his company suffered losses because Adhi Karya still owed more than Rp 50 billion ($5 million) for building three dormitory buildings at the Hambalang sports center complex in Bogor. He said that Global Daya Manunggal had finished 70 percent of the total work in the contract. 

Rizal Mallarangeng, the brother of former Youth and Sports Minister Andi Mallarangeng, previously accused Democratic Party chairman Anas Urbaningrum of being behind the Hambalang sports center graft case, saying his claim is backed by an audit of the affair. Rizal said he hoped the KPK would pursue the “real corruptor” and recover state funds. He pointed the finger at Adhi Karya and Mahfud Suroso, the president director of Dutasari Citralaras. The two companies were subcontractors in the Hambalang building project. The Supreme Audit Agency (BPK), which performed an audit on the project, said it was full of irregularities that had potentially cost the state up to Rp 243 billion in losses.

source : the jakarta globe

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