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ICW calls for increased transparency in COVID-19-related procurement amid irregularities
According to ICW's findings, there were 430 planned procurement packages related to COVID-19 by the Health Ministry worth Rp 839.8 billion (US$56.9 million) as of July 21.
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Cloth face masks dry on a line before being distributed for free in Tangerang, Banten, on April 9. (Reuters/Willy Kurniawan)
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raft watchdog Indonesian Corruption Watch (ICW) has called for the Health Ministry to improve the transparency of its procurement of medical equipment and other materials during the coronavirus pandemic following the discovery of what the group deemed as irregularities.
According to the ICW's findings, the Health Ministry had 430 procurement plans related to COVID-19 worth Rp 839.8 billion (US$56.9 million) as of July 21.
Of the total, 247 would be funded by the Public Service Agency (BLU), 141 under the state budget, 34 under the revised state budget and eight from non-tax revenue.
The state budget and revised state budget will fund the procurement of Rp 787.5 billion in COVID-19-related products and equipment, almost 90 percent of the total procurement value.
The ICW found that among 74 plans that would use direct procurement methods – which, according to Presidential Regulation No. 16/2018, should not exceed Rp 200 million and can skip the open tender process – 11 exceeded the stipulated budget limit.
Of the 74 plans, the Health Ministry has only published 18 procurement realization reports on the electronic procurement service system (LPSE), with the available information lacking in detail, the antigraft group said.
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“We note that the Health Ministry has not provided full procurement information other than on tenders and that many procurement plans will not be executed or processed further until providers are selected,” ICW researcher Dewi Anggraeni said during a discussion on Tuesday.
Among the reports published in the LPSE, ICW found that three direct procurement plans had been realized, but that procurement plans had not been published beforehand. Moreover, the group suspected that some of the companies that had won some projects through the tender process did not have adequate experience in the procurement of health-related products.
"During an emergency, the government is required to be swift and flexible in its procurement. But it should still be transparent and accountable,” Dewi said.
The ICW further demanded that all data on the procurement of COVID-19-related products should be published periodically and in detail, including the unit price of the procured goods. The group also urged government agencies to publish all procurement plans and realization reports on existing platforms, such as the LPSE.
During the discussion, Health Ministry human resources and education director Heru Prasetyo said he would look into claims that some tender winners lacked experience in the procurement of health equipment and products, as prior experience was a requirement for the direct procurement method.
Furthermore, National Public Procurement Agency (LKPP) catalog system development director Emin Muhaimin said government agencies were only permitted to not publish procurement plans for the procurement of emergency-related goods.
