City buys 60 buses without holding tender
City buys 60 buses without holding tender
Bambang Nurbianto, The Jakarta Post, Jakarta
Officials of the city administration revealed on Wednesday that
they are purchasing 60 buses for the busway system without
holding a tender, which is a violation of a presidential decree
on the procurement of goods and services for government agencies.
Head of the city transportation agency Rustam Effendi said the
buses which would be used in the first 12.9-kilometers of the bus
rapid transit (BRT) or busway from Blok M in South Jakarta to
Kota area in Central Jakarta would be Hino and Mercedes buses.
"Yes, the procurement of the 60 buses will be from Hino and
Mercedes. It (The process) is completed," Rustam told the press
at City Hall, adding that the assembling plant of the buses would
be PT New Armada.
The city administration has allocated Rp 50 billion for
procuring the buses from the city budget. The fund is part of
some Rp 117 billion which has been allocated to fund the project.
The procurement of the buses is a direct violation of
Presidential Decree No. 18/2000 on the procurement of goods and
services for government agencies.
Article 17, paragraph 4 of the presidential decree stipulates
that the procurement of goods and services may be implemented
without tender under four conditions:
* If the value of the project is not more than Rp 50 million.
* In the case of consulting services, where it is hard to find
participants who meet the requirements.
* In emergency or special conditions, upon approval of the
minister/head of non-ministerial
institution/governor/mayor/director of state-owned companies.
* If there is only one supplying company
According to Rustam, the city administration could not hold a
tender due to the shortage of time as the buses were needed
within six months.
"The presidential decree allows for direct appointment in an
emergency situation," said Rustam.
Governor Sutiyoso said that he was not aware of the direct
appointment of the companies for the procurement of the buses. He
stressed, however, that he had no objection if there was a
reasonable argument behind the appointment.
"The most important thing for me is that the project is
expedited," he said.
Meanwhile, chairman of the Jakarta Residents Forum (Fakta)
Azas Tigor Nainggolan slammed the direct appointment of the bus
suppliers, saying that there was no reason for the city not to
hold a tender for procuring the buses.
"How could they say it is an emergency situation when the plan
to buy the buses had already been determined last year," Tigor
told The Jakarta Post.