A criminal trial in Ubud has concluded over a villa construction project that left the investor facing losses of billions of rupiah. The case concerns a project in the village of Mas. The client transferred around 9 billion rupiah to the contractor, but instead of an almost completed villa received a structure only at the frame stage.
The victim in the case is American Dominic Veliko Shapko, director of Badak Bali Properties. Icelandic citizen Valur Blomsterberg persuaded him to hire Indonesian contractor Legowo Wisnu Saputro to build the villa. Valur also suggested putting the agreement in writing and took responsibility for supervising the construction. He was paid 75 million rupiah per month for this work.
The project was estimated at around 13 billion rupiah. The client had already transferred about 9 billion. With that level of payment, the construction should have been roughly 90% complete. In reality, the site was only about 22% finished. When Dominic returned to Bali, the build was still at the structural stage.
The court found that some of the money was not spent on the villa in Mas. Legowo used the funds on a personal car, a truck, construction materials, and another project in Tanjung Benoa, Badung. He also transferred 1 billion rupiah to Valur in three payments. In court, this money was described as the return of part of the funds to Valur.
Gianyar District Court found Valur Blomsterberg and Legowo Wisnu Saputro guilty in a fraud case linked to the villa construction. Both were sentenced to two years in prison. Prosecutors had sought a harsher sentence of three years and four months each.
There are many private villa projects in Bali where the client is abroad and the construction is managed through an intermediary and a contractor. In this setup, the weak point is control over money and work stages. If payments, budgets, completion certificates, and cash flow are not transparent, a conflict can start long before the owner sees the real state of the property.
Documents are the foundation of any deal, employment arrangement, lease, partnership, or construction project in Indonesia. Even a single poorly worded clause can lead to financial losses, disputes, or the inability to defend your rights.
Legal Indonesia drafts and reviews legal documents so that you are protected at every stage — from a simple lease to complex commercial agreements.
Source: detik.com
You can add one right now!