Teguh Prasetyo

PT Helizona won the tender to supply the National Police with two helicopters for $19.8 million. Rivals PT Esefa Krida bid $18.9 million and PT Dirgantara Indonesia $18.7 million. (Photo: Yudi Sukma Wijaya, JG)

Helicopter-Tender Probe Sent Flying Back to KPK

The Business Competition Supervisory Commission on Tuesday said it had found no evidence that would allow it to further investigate alleged violations in a tender for the supply of two helicopters to the National Police.

While the commission, also known as the KPPU, did find some evidence of irregularities, it said that these fell outside its authority. The case has now been referred back to the Corruption Eradication Commission (KPK).

Achmad Junaidi, the KPPU’s communications director, said the commission conducted a preliminary investigation into the tender after it received a report from the KPK on Feb. 18, 2008, and an aggrieved bidder in the tender process on Jan. 7, 2008.

“The findings of our preliminary investigation show that there were no violations in the tender process involving bidders colluding to win the tender, or sideline other bidders,” Junaidi said, adding that this was all the KPPU was empowered to investigate.

“However, there were strong indications of violations by the tender committee and one of the parties, ” he said, referring to a “government institution” or “the winner of the tender.” However, he said, these suspected violations fell outside the KPPU’s jurisdiction.

“We returned the case to the KPK earlier this month for further investigation,” he added.

The winner of the March 2006 tender was PT Helizona, which submitted a bid of $19.8 million to supply the National Police with two helicopters, each equipped with surveillance cameras.

Its rivals, PT Esefa Krida and PT Dirgantara Indonesia, put in bids of $18.9 million and $18.7 million, respectively, Junaidi said.

The KPPU was concerned that the company that submitted the highest bid won the tender, despite evidence that the cameras supplied did not match the technical specifications required by the police, Junaidi said.

Responding to public accusations of opaqueness, Junaidi said that new draft rules were being mulled by the commission to make the handling of cases more transparent and require higher standards of proof before an investigation could be commenced.

“We are planning to open sessions of our competition tribunal to the public and media,” Junaidi said.

According to the draft rules, the KPPU would only investigate a case if there were at least two pieces of corroborating evidence, such as documents, witness testimony or complaints.

“We will not follow up a case based on only one report from a party who reported the case, as before,” Junaidi said.

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