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Jakarta Post

‘Procurement failures’ to blame for budget surplus

  • Andreas D. Arditya

    The Jakarta Post

Jakarta   /   Fri, May 4 2012   /  09:10 am

The City Development Planning Board (Bappeda) has blamed procurement failures for most of its staggering Rp 6.47 trillion (US$705.23 million) surplus from last year’s Rp 31.7 trillion budget.

Wahyu Wijayanto, Bappeda’s head of development-planning information, said Thursday that tender cancellations and underperforming procurements were the major causes of the extraordinary amount of money number, worth a total of about Rp 3 trillion.

Bappeda recorded the failure to hold planned procurement tenders by the administration resulted in Rp 1.3 trillion of the budget left unused. Poor procurement, resulting in substandard goods or services, left around Rp 1.7 trillion in allocated funds not paid to tender winners.

As a result, the administration was not able to use those goods or services, or had to allocate more time for procurements, making it miss its own deadlines....