Citra Tubindo denies conspiracy allegation<\/p>\n
JAKARTA (JP): Steel pipe manufacturer PT Citra Tubindo denied
\non Monday it conspired with two other companies to win the tender
\nfor PT Caltex Pacific Indonesia's pipe procurement contract.<\/p>\n
Citra corporate secretary Harsono said it was unfair of the
\nBusiness Competition Oversight Commission (KPPU) to declare the
\ncompany had colluded in the tender process without first
\ndiscussing the allegation with Citra.<\/p>\n
\"Yes, KPPU questioned Citra, but not about any conspiracy. The
\ncommission only asked technical questions about the process of
\nthe tender, etc. and suddenly there is this verdict that we were
\ninvolved in a conspiracy,\" he told The Jakarta Post.<\/p>\n
KPPU announced on April 20 the tender held by American oil and
\ngas firm Caltex to procure low-grade and high-grade steel pipes
\nviolated fair business practices, and that the resulting
\nprocurement contract had to be annulled within 30 days.<\/p>\n
Three companies -- Citra, PT Purna Bina Nusa and PT Patraindo
\nNusa Pertiwi -- were found guilty of setting their bids to ensure
\nCitra won the tender.<\/p>\n
KPPU said representatives of the three companies met in a room
\nat the Aryaduta Hotel in Pekan Baru, Riau, in May last year to
\nreveal their bid prices.<\/p>\n
Harsono claimed Citra held this meeting with the other two
\ncompanies only to provide them with the letters of support they
\nrequired to join the bid.<\/p>\n
\"The other two companies do not have the facilities to produce
\nhigh-grade pipes so they were required to secure a guarantee from
\na company that (does have the facilities),\" he said, adding that
\nthe only two companies capable of producing both low and high-
\ngrade steel pipes were Citra and PT Seamless Pipe Indonesia Jaya,
\nwhich also took part in the tender.<\/p>\n
\"We never disclosed our bid or whatever it was the KPPU
\naccused us of,\" Harsono said.<\/p>\n
Purna Bina and Patraindo approached Citra for the guarantee
\nand not Seamless because the three companies are located on Batam
\nisland in Riau, while Seamless is located in Cilegon, West Java,
\nhe said.<\/p>\n
\"There was no foul play and (KPPU) with its verdict has
\ndamaged our good name by accusing us of being involved in a
\nconspiracy,\" Harsono said.<\/p>\n
However, Harsono said Citra would not take any action against
\nKPPU, nor would it be involved in Caltex's decision on whether to
\nappeal the ruling.<\/p>\n
Caltex introduced a new tender procedure last year for its
\npipe procurement contract, valued at US$12.35 million over three
\nyears. The new tender process was put in place by the company to
\nincrease efficiency.<\/p>\n
The new procedure requires companies to supply both low-grade
\nand high-grade pipes in one package, which until recently had
\nbeen procured by the company in separate tenders.<\/p>\n
Smaller companies, which generally can only provide low-grade
\npipes, were allowed to join the tender only if they could
\nguarantee they would also be able to provide high-grade pipes.
\nThis guarantee came in the form of a letter of support from a
\ncompany that has the facilities to manufacture high-grade pipes.
\n(tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/citra-tubindo-denies-conspiracy-allegation-1447893297",
"image": ""
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