Jakarta, 23 July 2020. Indonesia’s Corruption Eradication Commission (KPK) detained five suspects in an alleged corruption act of bogus projects involving PT Waskita Karya (Persero) Tbk.
Those five suspects consisted of FR (Head of Division II of PT Waskita Karya (Persero) Tbk term 2011–2013), YAS (Head of Finance and Risk Department of Division II of PT Waskita Karya (Persero) Tbk term 2010–2014), DSA (former Head of Division III/Civil/II PT Waskita Karya (Persero) Tbk), JS (former Head of Control Department of Division III/Civil/II of PT Waskita Karya (Persero) Tbk), and FU (former Head of Project and Head of Control Department of Division III/Civil/II PT Waskita Karya (Persero) Tbk).
These suspects were alleged to have collaborated in committing a criminal act of corruption of performing bogus subcontractor work in projects undertaken by the Division III/Civil/II of PT Waskita Karya (Persero) Tbk from 2009 to 2015. These bogus projects were estimated to have caused an IDR 202 billion loss in state funds.
From 2009 to 2015, there were at least 41 bogus subcontractor work contracts in 14 projects undertaken by the Division III/Civil/II of PT Waskita Karya (Persero) Tbk.
Because of these actions, these five suspects were alleged to have violated Article 2 paragraph (1) or Article 3 of Law Number 31 of 1999 as amended by Law Number 20 of 2001 on the Eradication of Criminal Acts of Corruption in conjunction with Article 55 paragraph (1)-1 in conjunction with Article 65 paragraph (1) of the Indonesian Criminal Code.
For the purpose of investigation, KPK detained those five suspects for the first 20 days from 23 July 2020 to 11 August 2020. The suspect DSA was detained in South Jakarta Departmental Police Detention Centre; the suspect JS was detained in East Jakarta Departmental Police Detention Centre; the suspect FU and YAS were detained in East Jakarta Class I Detention Centre of KPK’s Branch at Pomdam Jaya Guntur (Military Police Headquarters); and the suspect FR was detained in East Jakarta Class I Detention Centre of KPK’s Branch the Red and White Building (KPK Headquarters).
Those detainees were required to perform self-isolation in order to tackle the spread of COVID-19.
KPK strongly reminds all state-owned enterprises and other business players to rigorously apply the principles of good corporate governance in order to prevent various corrupt practices involving embezzlement of construction project budgets, such as this case or any other cases which have been uncovered by KPK. More rigorous control and law enforcement must be performed on projects which have great impacts on the general public. This is even more important, considering the fact that major projects undertaken by state-owned enterprises should be oriented towards serving people’s interests.
Public Relations Bureau
Corruption Eradication Commission
Jl. Kuningan Persada Kav 4, Jakarta Selatan
KPK Call Center: 198
(021) 2557-8300
