"We have found indications that the ministry may have prepared Nippon Koei to handle the project far in advance of the project bidding," KPPU spokesman Ahmad Junaidi told The Jakarta Post on Friday.

The anti-monopoly body's investigators had also found that the project's tender contestants, Nippon Koei Consortium (Jakarta Metro Engineering Consultants) and Pacific Consultants International Consortium, were likely to have conspired to fabricate the tender process, Junaidi added.

In response to those early findings, he said, the commission had sent a letter to the newly appointed Transportation Minister Freddy Numberi as an "early warning."

"Our investigators are still verifying all data and information collected from any involved parties."

In the letter, dated Nov. 5, and signed by KPPU Chairman Benny Pasaribu, the commission suggested Numberi conduct any procurement processes in-line with a 1999 law on anti-monopoly and a 2003 presidential decree on government procurement guidelines.

The deputy transportation minister, Bambang Susantono, denied the ministry had fabricated the tender process so Nippon Koei would win.

"All tender processes were conducted using proper procedures."

The ministry's spokesman Bambang S. Ervan, however, acknowledged that the procurement committee had once cancelled a bidding result on the project, won by Katahira over Nippon Koei.

"The Japan International Cooperation Agency *JICA* asked us to rerun the tender because some queries on the tender process didn't meet their requirements."

Nippon won the tender rematch.

On Thursday, the Indonesian Procurement Watch (IPW), an NGO focusing on procurement on public facility, urged the transportation minister to follow up the monopoly watchdog's recent findings that indicated "vertical conspiracy."

Previously, on Sept. 16, the of Government Procurement Regulatory Body (LKPP) had declared that Nippon Koei breached ethical conduct by sending letters to the ministry's railway division on Oct. 14, 2008, and to the minister on Oct. 24, 2008.

With two official letters stating strong indication of conspiracy by the Nippon Koei, IPW's director of investigation Hayie Muhammad said the ministry must quickly decide on the tender winner.

"Two official letters have similarly stated that they found a strong indications of conspiracy and influencing of tender committee by Nippon Koei to win the bid." (bbs)

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