Corruption Suspected in Construction of Riau PON Stadium

Pekanbaru, Riau, (antarariau.com) - Infrastructure and construction service expert Prof Sugeng Wiyono said there are strong indications of irregularities in the construction of the Riau National Sport Week (PON) stadium in this city.

Irregularities caused a big loss in state fund in the construction of the Rp1.1 trillion stadium, which is to be used for the 2013 Islamic Solidarity Games, Sugeng said here on Sunday

He said the stadium was to have a capacity of 48,000 seats, according to the contract but in realization it has only a 37,000 seat capacity.

The difference in capacity needs explanation including in the cost of construction, he said.

In addition, the difference in implementation and the contract is a breach of contract against the law No. 18 of 1999, he said.

A contract is binding and no compromise in the implementation of a contract in construction service, he said.

He said the stadium which is built over a 66.4 hectare plot of land is 77,552 sq. meters in size.

The value of the stadium per sq. meter, therefore, is around Rp10.735 million, but the value per seat is around Rp19.438 million.

"The value is fantastic, much higher than the value of other stadiums in the country," he said.

He cited, construction of a 40,000-seat stadium in Gedebage, West Java, built almost at the same time with the Riau National Sport Week Stadium, cost only Rp623 billion or Rp16.4 million per seat, and the Palaran National Sport Week Stadium in East Kalimantan with a seat capacity of 50,000 cost only Rp800 billion.

The big difference in cost raised a big question, he said.

The potential loss in state fund that has to be accounted for, therefore is not only caused by capacity being not up to the original contract, he said.

He quoted unnamed sources as saying that in addition to the capacity being less than set in the contract, there was also big mark-up in the costs.

He said the cost of building the stadium had increased from Rp900 billion originally to Rp1.1 trillion because of revision of the contract.

Originally the stadium was to have a national standard but the quality was changed to international standard with the revision of the contract without legal procedure, he said.

He said an increase of more than 10 percent in budget of a project will require a repeat in tender .

"But it is entirely not so . Therefore, it was against the law on construction service," he said.

In addition there has been no transfer from the contractor to the government of the project, which had been used for national and regional sport events.