The Jakarta Post reported that it had seen audit documents dating from 2011 from the Development Finance Comptroller (BPKP), which indicated foul play in the purchase of three container cranes (QCC) in 2010 for three ports in Palembang, South Sumatra; Pontianak, West Kalimantan; and Lampung.
The documents suggested several violations, including in the direct appointment of Chinese company Wuxi Huadong Heavy Machinery (HDHM) to supply the cranes at a cost of $17m, the report said.
"The procurement process from direct selection [in February 2010] to the direct appointment [negotiations were completed in April 2010] of HDHM did not go through the proper mechanism,” the BPKP was cited as saying.
Pelindo II labor union head Kirnoto confirmed the incident and hoped the KPK could expand its investigation into other violations, including in the procurement of 10 mobile cranes worth IDR45bn ($3.9m) for nine of Pelindo’s ports in 2012.
“There’s so many financial violations stemming from Lino’s policies,” Kirnoto alleged.
The contract was allegedly given to China’s Guangxi Narishi Century Equipment Co. Ltd., which was a new company. “The company was established less than two years ago when it participated in the bidding in November 2011,” a statement in the audit report said. Other accusations include the fact that the Pelindo contract accounted for 72% of the company’s total assets.
KPK spokesman Johan Budi was quoted as saying the antigraft body was investigating alleged irregularities in Pelindo’s project bidding and refused to comment further. “The focus of the investigation is on the provision of infrastructure for several ports in 2010,” said Johan, adding that no suspects had been named.
Lino said separately, that his decision to directly appoint HDHM was legally justified according to Pelindo’s internal regulations.
“This is because organizing new bidding for the project, which has been in limbo since 2007, would’ve taken time and worsened congestion at the three ports,” Lino said. “The reason we chose HDHM was that it offered the cheapest price,” he clarified.
In response to the BPKP’s audit, Lino had said: “[The Pelindo II] board of commissioners commissioned the audit, so you can ask them about it.”
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