Mega orders resolution of MI-17 choppers fiasco

Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

President Megawati Soekarnoputri has stepped in to stop the fray over the purchase of four Russian-made MI-17 helicopters, ordering the defense ministry to settle the matter as quickly as possible.

Megawati summoned Indonesian Military (TNI) chief Gen. Endriartono Sutarto and Ministry of Defense secretary-general Vice Marshall Suprihadi on Monday to clear up the mess that has caused a delay in the delivery of the four helicopters.

"The President says that the purchase has to go ahead and we have been asked to set a timeframe for the lender company to fulfill its obligations," Endriartono said after the meeting.

The President's intervention comes after the House of Representatives announced it would set up a working committee to probe the US$21.6 million deal.

The Ministry of Finance had submitted some $2.6million as a down payment for the four helicopters, but the lender company failed to provide a bank guarantee to Russia's Rosoboronexport.

Without the bank guarantee, Rosoboronexport could not deliver the four helicopters in February as scheduled.

Endriartono earlier accused the defense ministry of failing to process the deal, and asked the House to probe the agreement between the ministry and the Singapore-based lender company.

"The problem is with the lender company. We provided the down payment, so it is up to the company to fulfill its obligation," the TNI chief said.

He further said the Ministry of Defense could not say whether the financial company was capable of pursuing the deal.

The general said he would follow up Monday's discussion with the ministries of finance and defense to clear up the problem.

The four helicopters were part of Megawati's shopping spree on military equipment from Russia during her state visit there in April last year.

Purchased at the same time were four Russian-made Sukhoi planes, which also caused controversy and prompted the House to establish a working committee to look into the deal.

The House eventually approved the purchase and the government plans to buy another eight or 10 planes to give the TNI a full squadron of Sukhoi.