KPK says state suffer Rp 40 b from graft in Papua

KPK says state suffer Rp 40 b from graft in Papua

Received from Joyo Indonesia News
The Jakarta Post [web site]
by Irawaty Wardany

The Corruption Eradication Commission (KPK) revealed Monday that the state could suffer an estimated Rp 40 billion (US$3.73 million) in losses from the recently uncovered graft case in Papua.

"We have declared two suspects in the case last week, SS, former supplier for a development project in Supiori Regency, and JFW, Supiori Regent," the Corruption Eradication Commission (KPK) spokesman Johan Budi told reporters in Jakarta on Monday.

SS was identified as Suryadi Santosa a director of MMJ, a company responsible for the procurement of custom houses and a market in the regency in 2007. The project is estimated to cost up to Rp 100 billion.

JFW or Jules F. Warikar allegedly appointed MMJ without a bidding process while Suryadi was accused of inflating the cost of the project development.

"They will be charged of violating article 2 (1) about enriching people, article 3 about authority violation or article 5 about bribery," said Johan.

Currently four KPK teams are still gathering more clues related to the case in four MMJ office branches.