KPU names ink tender winners amid financial doubt

KPU names ink tender winners amid financial doubt

Moch. N. Kurniawan and Evi Mariani, The Jakarta Post, Jakarta

After a two-week delay, the General Elections Commission (KPU)
announced on Wednesday four companies that won the contract to
provide ink for the April 5 legislative election despite some
serious questions about their financial documents.

KPU member Rusadi Kantaprawira, who chairs the ink tender
committee, said PT Fulcomas Jaya, PT Lina Permai Sakti, PT
Mustika Indra Mas and PT Wahgo International won the contract to
provide 1.2 million bottles of indelible ink, each containing 30
milliliters.

The selection was finalized before midnight on Tuesday after
the four companies agreed on the price range set by KPU at
between Rp 28,750 (US$3.42) and Rp 30,275 per bottle, depending
on the distance of delivery.

The ink will be imported from India, although the KPU is
considering naming a local producer to supply 2.5 percent of the
need.

Of the four winners, Fulcomas had reported total sales of Rp
889 million in 2002, but paid no income tax for that year,
according to documents submitted to the KPU.

The company also booked sales worth Rp 635 million or an
average of Rp 52.9 million per month last year.

Lina Permai had no sales and zero income tax in 2002,
according to KPU data. It did not submit its 2003 tax report to
KPU, but a tax document obtained by the Jakarta Post reveals the
company's total sales amounting to Rp 2.5 billion in 2003. The
sales, however, only existed in December.

KPU has not provided financial data for PT Mustika, but tax
documents made available to the Post disclosed that the firm
recorded no sales in 2003, but reported Rp 7.2 billion in sales
in 2002.

PT Wahgo recorded Rp 17 billion in sales in 2003 and income
tax of Rp 19,773 million, KPU said, however, it had not received
the firm's 2002 tax report.

The winners announcement came amid the backdrop of a debate
within the KPU on whether to repeat the tender as the
participants all bid at higher prices than KPU's ceiling.

KPU's ink tender secretary H.A. Royadi said the four tender
winners had completed their tax reports with the Directorate
General of Tax.

"They will import the indelible ink from India and distribute
it to regencies and municipalities across the country in a
maximum 21 days," Royadi told reporters. KPU has said all
election materials must reach polling stations by March 25.

Separately, Mulyana W. Kusumah, chairman of ballot paper
printing tender, said he remained uncertain about when the
winners would be announced.

Asked about a Jakarta-based firm without sales and tax report
in 2003, Mulyana confirmed that the company had been chosen as
one of 14 companies bidding for the tender to print the 660
million ballot papers.

He promised to verify the data on the company, which
reportedly may have links to an influential minister.

Meanwhile, Daan Dimara, chairman of ballot form tender, said
he would summon all 21 companies that passed the pre-
qualification stage on Thursday and announce the winners next
week.

Tax documents obtained by the Post revealed that some of the
bidders had no sales and no taxes in the past few years.

The ballot form would be used to record, among other things,
the result of ballot counting.

Separately, the Jakarta Police said they had prepared 15,968
personnel to maintain security before and during the election
across Jakarta, Depok, Bekasi and Tangerang.

"Up to four officers will be posted at each of the 2,812
polling stations throughout Greater Jakarta," the city police
spokesman Sr. Comr. Prasetyo said on Wednesday.