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Dahlan defends Pelindo II boss in KPK probe

State-Owned Enterprises Minister Dahlan Iskan on Wednesday shrugged off the questioning of state-owned Pelindo II president director RJ Lino over alleged irregularities in the purchase of US$17 million worth of equipment by the country’s biggest seaport operator

Haeril Halim (The Jakarta Post)
Jakarta
Thu, April 17, 2014

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Dahlan defends Pelindo II boss in KPK probe

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tate-Owned Enterprises Minister Dahlan Iskan on Wednesday shrugged off the questioning of state-owned Pelindo II president director RJ Lino over alleged irregularities in the purchase of US$17 million worth of equipment by the country'€™s biggest seaport operator.

The Corruption Eradication Commission (KPK) questioned Lino on Tuesday after leaked documents shed light on irregularities into the purchase of three container cranes (QCC) in 2010 for three ports in Palembang, South Sumatra; Pontianak, West Kalimantan; and Lampung.

'€œPak Lino has explained everything to the KPK. Previously, he was also summoned by the BPKP and he gave a similar explanation the agency,'€ Dahlan told The Jakarta Post on Wednesday, referring to the Development Finance Comptroller (BPKP).

The BPKP'€™s audit documents on the project from 2011, copies of which were obtained by the Post recently, suggested several violations in the project, including the direct appointment of Chinese company Wuxi HuaDong Heavy Machinery (HDHM) to supply the cranes for the three ports.

'€œThe 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 document reveals.

Head of Pelindo II labor union Kirnoto said that both Pelindo and the State-Owned Enterprises Ministry, the ministry in charge of Pelindo II, did not follow up on the BPKP'€™s audit, which ordered further investigation into the tender.

'€œFinancial division head Dian M. Noer had reminded Lino that his move to directly award HDHM the project could result in serious legal consequences. However, without Dian'€™s approval, Lino decided to transfer $3 million to HDHM'€™s Bank of China account as the first payment of the project,'€ Kirnoto said.

Responding to the BPKP'€™s audit, Dahlan said, '€œI will not comment further because Pak Lino has explained everything.'€

Dahlan also did not respond to the Post'€™s question on whether his ministry had launched a probe into alleged irregularities involved in the tender.

Speaking after questioning on Tuesday night, Lino accused his rivals of plotting his downfall.

'€œThis is a normal procedure. I am being summoned by the KPK and I came to clarify things so that everything is crystal clear,'€ Lino told reporters at KPK headquarters without elaborating.

He maintained that no internal regulations had been broken in the company'€™s move to directly invite foreign firms to make bids, saying it was normal business practice.

In a separate interview with the Post before being questioned, Lino said his decision to directly appoint HDHM could be legally justified based on Pelindo'€™s internal rules.

'€œThis 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.

KPK spokesman Johan Budi said that the antigraft body had already questioned a number of officials in relation to its probe into the case, adding that the KPK had started its investigation into the case in late 2013.

Johan refused to comment further on whether the KPK had requested the Financial Transaction Reports and Analysis Centre (PPATK) to provide data relating to the case.

Contacted separately, PPATK deputy chairman Agus Santoso confirmed that the KPK had requested assistance for the Pelindo case.

'€œYes, there has been a request from the KPK for help with a case that it is currently being investigated,'€ Agus said.

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