KPU mulls annulling contract with ballot boxes

KPU mulls annulling contract with ballot boxes

Moch. N. Kurniawan, The Jakarta Post, Jakarta

The General Elections Commission (KPU) said on Friday it was
considering reviewing its contract with private firm PT Survindo
Indah Prestasi for its inability to stick to the terms of the
contract in providing election ballot boxes.

The company won the KPU tender worth Rp 311 billion (US$36.5
million) to produce ballot boxes for the 2004 elections.

Even the commission had secretly decided on Dec. 21 to hand
over 40 percent of the production of 2,194,155 ballot boxes to PT
Tjakrindo Mas, the second winner in the tender, after Survindo
faltered in its performance.

"We will probably review the contract (with the company) in
mid-January," KPU deputy secretary-general Sussongko Rahardjo
said.

He said the KPU had so far reprimanded Survindo three times in
keeping to its target.

By Dec. 31 the company was able to produce only a few of the
targeted 600,000 ballot boxes, Sussongko said without mentioning
any number.

A KPU source said that Survindo only produced about 30,000
boxes by the end of 2003, while the 2004 general elections
scheduled for on April 5 were only three months away.

The source said the State Audit Agency (BPK) had suggested
that the KPU annul the contract with Survindo.

Sussongko said a similar performance evaluation would also be
applied to the new producer Tjakrindo.

Separately, KPU deputy chairman Ramlan Surbakti admitted that
Survindo was facing financial problems.

Echoing Ramlan's statement, Sussongko said Bank Bukopin had
withdrawn its financial support for the company.

Meanwhile, another KPU member Chusnul Mar'iyah said Survindo
had difficulty obtaining the raw materials to produce the boxes.

"We checked everything and we found that there are too many
problems, although the company has tried to fix them," she said.

Chusnul said the KPU had the right to revoke the contract if
the company failed to perform accordingly.

Survindo executive director Sihol Manullang admitted that his
consortium had produced only around 40,000 boxes by the end of
December, saying it should have provided 150,000 boxes last
month.

He also admitted that Survindo had had financial difficulties
since the initial production stage, but claimed that the problem
would not hamper the total production.

The KPU had been strongly criticized for selecting Survindo as
the winner of the tender amid alleged irregularities in the
bidding process.

The company has reportedly no experience in producing ballot
boxes.

Based on data from the Jakarta Chamber of Commerce and
Industry and the joint committee of Jakarta certification,
Survindo is a warehouse and office goods provider. It is also a
printing and publishing company that often deals with
agricultural products and offers land, sea and air transportation
rental services.

Commenting on the case, Ferry Mursyidan Baldan, a deputy
chairman of House Commission II, backed the KPU's plan to take
necessary action in handling the problem with ballot box
production.

"If it is not settled immediately, the problem will jeopardize
the general election. The KPU must take the necessary measures
with minimum risks," he said.