Police investigates alleged corruption in four power projects

In addition to the Borang power plant in South Sumatra, the police are also investigating alleged corruption in three other power projects including the Cilacap power plant in Central Java, Media Indonesia reported on Monday.

?We have received reports of alleged corruption in the four power projects, and we are still investigating the cases,? Antun Bachrul Alam, the spokesman of the national police, said in Jakarta Saturday.

He, however, did not mention the names of the other two power plants involved in the alleged corruption charges. In the Cilacap power plant, the police was investigating the possible abuse of LC facility worth about US$100 million used to back up the financing of the project.

According to him, the financial facility was guaranteed by PLN, while according to the normal practice, it should be guaranteed by the receiver PT Sumber Segara Primadaya which acted the developer of the project.

A number of PLN?s two executives have been named suspects in the alleged corruption in the company?s Borang power plant in South Kalimantan. (*)