Citra Tubindo denies conspiracy allegation
JAKARTA (JP): Steel pipe manufacturer PT Citra Tubindo denied on Monday it conspired with two other companies to win the tender for PT Caltex Pacific Indonesia's pipe procurement contract.
Citra corporate secretary Harsono said it was unfair of the Business Competition Oversight Commission (KPPU) to declare the company had colluded in the tender process without first discussing the allegation with Citra.
"Yes, KPPU questioned Citra, but not about any conspiracy. The commission only asked technical questions about the process of the tender, etc. and suddenly there is this verdict that we were involved in a conspiracy," he told The Jakarta Post.
KPPU announced on April 20 the tender held by American oil and gas firm Caltex to procure low-grade and high-grade steel pipes violated fair business practices, and that the resulting procurement contract had to be annulled within 30 days.
Three companies -- Citra, PT Purna Bina Nusa and PT Patraindo Nusa Pertiwi -- were found guilty of setting their bids to ensure Citra won the tender.
KPPU said representatives of the three companies met in a room at the Aryaduta Hotel in Pekan Baru, Riau, in May last year to reveal their bid prices.
Harsono claimed Citra held this meeting with the other two companies only to provide them with the letters of support they required to join the bid.
"The other two companies do not have the facilities to produce high-grade pipes so they were required to secure a guarantee from a company that (does have the facilities)," he said, adding that the only two companies capable of producing both low and high- grade steel pipes were Citra and PT Seamless Pipe Indonesia Jaya, which also took part in the tender.
"We never disclosed our bid or whatever it was the KPPU accused us of," Harsono said.
Purna Bina and Patraindo approached Citra for the guarantee and not Seamless because the three companies are located on Batam island in Riau, while Seamless is located in Cilegon, West Java, he said.
"There was no foul play and (KPPU) with its verdict has damaged our good name by accusing us of being involved in a conspiracy," Harsono said.
However, Harsono said Citra would not take any action against KPPU, nor would it be involved in Caltex's decision on whether to appeal the ruling.
Caltex introduced a new tender procedure last year for its pipe procurement contract, valued at US$12.35 million over three years. The new tender process was put in place by the company to increase efficiency.
The new procedure requires companies to supply both low-grade and high-grade pipes in one package, which until recently had been procured by the company in separate tenders.
Smaller companies, which generally can only provide low-grade pipes, were allowed to join the tender only if they could guarantee they would also be able to provide high-grade pipes. This guarantee came in the form of a letter of support from a company that has the facilities to manufacture high-grade pipes. (tnt)