Indonesian Political, Business & Finance News

Builders upset at irregularities in tander process

Builders upset at irregularities in tander process

JAKARTA (JP): Building contractors are complaining about
rampant irregularities in the process of tendering government
projects.

Daniel Hutapea, chairman of the Jakarta chapter of the
Association of Indonesian Building Contractors, cited the
Ministry of Public Works as one of the institutions where the
bidding process is most often rigged.

Hutapea was quoted yesterday by the Antara news agency as
saying that officials in charge of tendering projects always seem
able to find loopholes for gaining personal benefit from project
tendering.

"Officials in charge of tendering government projects often
collude with particular bidders even though presidential decrees
No. 16/1994 and No. 24/1995 set out clear-cut rules on the way
government contracts should be awarded," Hutapea pointed out.

He said collusion often occurred due to a provision in
Presidential Decree No. 16/1994 which stipulates that officials
in charge of tendering government projects may issue special
rulings if they deem it necessary.

Almost 50 percent of the allegations of corruption made
against Minister of Transportation Haryanto Dhanutirto recently
involved irregularities in the tendering of projects and the
rigged evaluation of bids.

State Secretary/Minister Moerdiono, who announced the
conclusion of government investigations into the allegations
early this week, confirmed that irregularities have occurred in
the tendering of projects and the awarding of contracts for jobs
under the jurisdiction of the Ministry of Transportation.

The government considered the irregularities only
administrative weakness and not violations of state rulings on
the tendering of government projects.

Hutapea said officials in charge of tendering projects often
set requirements which bidders view as odd and extremely
unreasonable.

"For example, the tender committee for particular projects
requires bidders to have their bidding documents signed by the
local administration chief," he said.

The problem occurs when this requirement is stated only one
day before the bidding deadline.

Hutapea complained that the address of the tender committee
was sometimes made unclear so as to mislead potential bidders.

"Sometimes, project tender notices are announced through very
small newspaper advertisements so most contractors are often not
aware of the projects being tendered," he added.

He said the government should make more concerted efforts to
minimize irregularities in the tendering process for projects
because the bidding results affect the quality of project
implementation. (vin)

View JSON | Print