Russian chopper deal lands several in hot water
Russian chopper deal lands several in hot water
Kurniawan Hari, The Jakarta Post, Jakarta
Legislators have found numerous problems in the US$21.6
million purchase of four Russian-made Mi-17 helicopters committed
by high-ranking officers in the Army, the defense ministry and
the finance ministry.
The Army and the defense ministry were blamed for procedural
mistakes, starting from the process of the public tender to the
contract. The defense ministry and the finance ministry were held
accountable for the payment problems.
Commission I for defense and security affairs of the House of
Representatives urged the national police and the Attorney
General's Office to charge Andy Kosasih, a middleman in the
scheme, causing state losses.
"We have agreed to report Andy Kosasih to the police for theft
and collusion," commission deputy chairman Effendi Choirie told
the press after an internal meeting here on Wednesday.
Choirie added that Army chief of staff Gen. Ryamizard Ryacudu
and the Minister of Defense must take harsh action against their
staff members involved in the scandal.
The House's Commission started its investigation into the
scandal on March 2 following media reports on alleged
irregularities in the purchase of four Russian-made 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.
The commission said that the decision of the Army chief on
Oct. 10, 2002 to declare PT Putra Pobiagan Mandiri as the winner
of the tender lacked objectivity and transparency.
"The authority to declare the winner of a public tender is in
the hands of the defense minister," Choirie said, reading out a
25-page report.
The Army chief made the decision after receiving input from
Col. Kusmayadi, a staff member in charge of the tender process.
Later, on Oct. 31, 2002, the Army chief amended an earlier decree
which was then misused by Andy Kosasih to create a performance
bond.
The content of the performance bond contradicts the business
contract and regulations on the purchase of equipment. Andy
Kosasih and Swifth Air & Industrial Supply Pte Ltd., had
manipulated the performance bond and did not present advance
payment for the project, causing the purchase of helicopters to
be halted, he said.
The commission urged the defense minister to cancel the
business contract with Swifth Air and demanded the latter to
return US$3.24 million for the advance payment. It also urged the
government to improve the standard operating procedure 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.