House told to OK chopper deal

House told to OK chopper deal

Kurniawan Hari, The Jakarta Post/Jakarta

The House of Representatives and the government look set to
revive their debate over the procurement of Russian-made MI-17
helicopters following an official request from Defense Minister
Juwono Sudarsono for resumption of the procurement process.

Lawmaker Happy Bone Zulkarnaen said on Sunday the House's
Commission I for defense and foreign affairs discussed the letter
in an internal meeting on Friday.

"We have discussed the letter from the defense minister, but
we have been unable to make a decision. We need more time to
thoroughly deliberate the matter," said Happy of Golkar Party.

He said some legislators had expressed rejection to the
demand.

Fellow lawmaker Djoko Susilo of the National Mandate Party
(PAN) faction concurred with Happy, saying the commission had
recommended that the government halt the procurement project.

Both Happy and Djoko were referring to a letter from Juwono
dated Nov. 1, which said the government intends to restart the
purchase of four MI-17 helicopters.

The minister said the Indonesian Military (TNI) was in need of
those aircraft.

The Commission I of the previous House recommended termination
of the helicopter procurement by the Army after its investigation
found irregularities in the US$21.6 million project to procure
the four helicopters.

At least 13 figures, including the Army chief, secretary of
the defense ministry Rear Marshal Suprihadi, the financial
ministry's director of budgeting Achmad Rochjadi and Andy Kosasih
from Singapore-based Swifth Air and Industrial Supply, were
summoned for questioning by the commission.

The commission said that the decision of the Army chief on
Oct. 10, 2002 to appoint PT Putra Pobiagan Mandiri the winner of
the tender lacked objectivity and transparency.

In its recommendation, the commission urged the defense
ministry to cancel the contract with Swifth Air and demanded that
the latter return $3.24 million that the ministry had disbursed
for the advance payment.

It also urged that the government improve the standard
operating procedures in the purchases of military equipment
through export credit facilities.

The defense ministry and the national police must report to
the House's commission on the purchase of military and police
equipment, the commission said.

"We don't want to disturb the procurement process. We just
want the government to follow up the recommendations of the
commission," Happy said.

Djoko said the legislators had recommended that the government
find another partner to replace Swifth Air as its contractor.

The defense ministry has been promoting its new regulation on
arms procurement, which will take effect on Jan. 1. The
regulation stipulates that all the procurement process, including
the appointment of contractors, will be monopolized by the
ministry after learning the need of the three armed forces.

The ministry expects to pay the purchase through export credit
from the governments of the countries supplying the military
equipment.