BALINEWSID.COM, DENPASAR — Allegations of fraudulent practices disguised as foreign investment have resurfaced in Bali, after several local vendors claimed they suffered losses amounting to hundreds of millions of rupiah from abandoned restaurant and property projects allegedly managed by a company called Tavolo Group.
The company is reportedly owned by two American nationals of Bosnian origin, Edo Dozofik and Ado Dozofik. The pair allegedly raised funds from foreign investors, particularly expatriates, through a series of business ventures ranging from restaurants and cafes to apartment developments.
One vendor, who requested anonymity, said the company initially developed restaurant businesses in the Canggu area before expanding into the property sector.
“Many foreign investors put their money into the projects. After that, they moved into other developments, including apartments,” the source said.
The projects later expanded into apartment construction in Kerobokan. However, payments to vendors and contractors reportedly began to stall before eventually stopping altogether.
The vendor claimed to have completed furniture work worth approximately Rp1 billion for two mock-up apartment units. Although a 50 percent down payment was received, the remaining balance was never fully paid.
“There should have been another 35 percent payment before delivery, but the funds never came. The project was halted for nearly a year,” the vendor said.
After a new investor entered the project, the vendor reportedly received only partial payment. Of the remaining Rp140 million invoice, only half was settled, while another Rp43 million owed to a furniture supplier remains unpaid.
A furniture vendor, who also asked to remain anonymous, said the next 35 percent payment installment was delayed for more than a year.
“After a new investor came in, we received another installment payment, but after the work was completed there was still Rp43 million left unpaid for the past two years,” the source said.
The source added that an MEP vendor is still owed Rp130 million, while an MEP consultant allegedly has Rp31 million in unpaid fees dating back two years.
The vendor also accused the company of making unilateral deductions for alleged damages without providing evidence.
“They claimed there was damage, but we were never allowed to inspect it ourselves. They only showed documentation that we could not verify. That makes no sense,” the vendor said.
Another vendor described what they believed was a recurring pattern in the projects, where obligations to previous vendors were left unresolved while new vendors were brought in to continue the work.
“Even small remaining payments were never settled. Old vendors were simply abandoned,” the source said.
Meanwhile, a project consultant said he became involved in October 2023 to supervise construction work in Kerobokan. He initially proposed a service fee of Rp45 million, which was later negotiated down to Rp30 million with a 50 percent advance payment agreement.
Work continued until November 2023 before the project was halted in December following a dispute between the project owners and the mechanical, electrical, and plumbing contractor.
During the suspension period, the consultant said contractor work worth around Rp130 million was deemed eligible for payment, but the payment was postponed until the entire project was completed.
In May 2024, the consultant was again asked to calculate mock-up costs for several apartment units valued at Rp120.88 million. While part of the payment was made, Rp31.48 million allegedly remains unpaid.
Sources also claimed that projects were frequently carried out without formal written contracts, relying only on verbal instructions and advance payments, while final settlements continued to be delayed.
“They kept opening new projects without resolving old obligations,” one source said.
Responding to the allegations, Tavolo Group denied all accusations. In a written statement sent via text message, the company said the circulating narrative was inaccurate and unfounded.
“All professional relationships with business partners have been conducted properly and transparently. Payment obligations have been fulfilled in accordance with project progress and contractual agreements,” the company stated.
The company also urged parties making allegations to provide detailed data and documentation for clarification based on administrative evidence.
Separately, immigration authorities said they would follow up if official reports regarding alleged violations by foreign nationals are submitted. Through its foreigner monitoring patrol program, officers said they could examine residence permits and business activities conducted by foreign citizens.
The case adds to growing concerns over problematic foreign investment projects in Bali that have affected local businesses and contractors. Vendors are now calling for serious attention from law enforcement authorities to ensure legal certainty and protection for local entrepreneurs.
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