Fri, 20 Jun 2003

House to probe irregularities in Sukhoi deal

Kurniawan Hari, The Jakarta Post, Jakarta

The House of Representatives will set up a special team to investigate the alleged irregularities in the recent purchase of Russian Sukhoi jet fighters and helicopters, a deal worth US$192.6 million that involved two government officials.

House's defense commission deputy chairman Effendy Choirie said after the commission's internal meeting here on Thursday that his commission decided to set up the special team to inquire about the allegations that the deal violated the defense and budgetary laws.

"We just want to get the purchase procedures back on the right track," he said.

The purchase deal for the Russian warplanes, consisting of four Sukhoi jets, two SU-30 and two SU-27 bombers and two MI-35 helicopters, was done during President Megawati Soekarnoputri's visit to Russia last month.

The decision for the establishment of the inquiry team was to follow up allegations by leading legislators who believe there were irregularities in the deal. The legislators have been suspicious because the deal violated important laws regarding defense, budgetary law, banking procedures and regulations.

Official sources within the Air Force have even expressed objections to the deal, because the Air Force has been in urgent need of cargo aircraft, instead of jet fighters and helicopters, to help complement or replace their old Hercules C-130 planes which are mainly used to move military personnel across the archipelago.

Choirie, also a legislator from the National Awakening Party (PKB), said that the defense minister should be involved in the deal because according to Article 16 of the defense law the defense minister has the authority over budgets, recruitment, managing national resources, supervising technology and the defense industry, as well as procuring defense and military equipment for the armed forces.

The Sukhoi deal only involved Minister of Industry and Trade Rini M.S. Soewandi and Widjanarko Puspoyo, head of the National Logistics Agency (Bulog) which deals with domestic rice supply issues.

"Besides, the purchase of Sukhois and Mi35 choppers is not included in the 2003 defense budget which was approved by the legislators, nor was it in the military's 2004 planned budget," he said.

The downpayment of $26 million for the relatively modern bombers and choppers was negotiated with a counter-trade mechanism through Bank Bukopin.

The establishment of the inquiry team also won support from the Indonesian Democratic Party of Struggle (PDI Perjuangan) faction. PDI Perjuangan, the party in which the Bulog chief is a member, is chaired by Megawati.

Zoelvan Lindan of PDI Perjuangan said that his faction supported the commission's decision because it was part of the legislators' supervisory function.

"We need to improve our supervisory role," he added.

Choirie, however, declined to reveal what target the commission wanted to reach from the investigation. "The most important thing is that the team will begin their inquiry next week."

He hinted that the President had no alternatives but to fire Rini and Widjanarko if they were found guilty in the deal.

The commission was set up to seek clarification on the deal from defense minister Matori Abdul Djalil, Minister of Finance Boediono.TNI Chief Gen. Endriartono Sutarto, as well as Rini Soewandi and Widjanarko.

In the previous hearing with the commission, Matori and Endriartono said that they were not involved in the planning of the Russian warplane purchase.