TPJ appeals against verdict, Rp 1b fine

TPJ appeals against verdict, Rp 1b fine

The Jakarta Post, Jakarta

PT Thames PAM Jaya (TPJ) has appealed against a verdict made by
the Business Competition Supervisory Commission (KPPU) and the
South Jakarta District Court, requiring the foreign water company
to pay Rp 1 billion (US$111,111) in fines for collusion.

TPJ president director John Trew said in a press statement on
Wednesday that his company had done nothing wrong during the
recruitment of over 300 security officers for the company.

"TPJ has shown transparency and goodwill toward all stake
holders in the open tender," according to the statement, which
was also signed by the company's lawyers -- Humphrey R. Djemat
and Darwin Aritonang.

KPPU fined TPJ Rp 1 billion on Dec. 13, 2004, accusing it of
collusion with PT Interteknis Surya Terang (IST) in deciding the
winner of the tender. The KPPU decision was further strengthened
by a verdict at the South Jakarta District Court on Feb. 28,
2005.

According to the KPPU, TPJ and IST were guilty of violating
Article 22 of Law No. 5/1999 on monopolies and healthy business
competition because they colluded to determine the outcome of the
Rp 5 billion tender.

Investigators concluded that the case came about after TPJ
held an open bid to hire some 307 security officers, in which 16
companies made it past the prequalification stage. The tender
committee later announced that only 12 of the companies fulfilled
all necessary requirements.

But TPJ insisted that IST be included in the next stage of the
tender process even though it did not submit documents for
prequalification.

TPJ demanded that the Supreme Court annul the verdict, saying
that Article 22 of the law No.5/1999 on monopolies and healthy
business competition could not be used as a basis for deciding
the case.

According to the statement, presidential decree No. 18/2000 on
tender mechanisms could only be used in the procurement of
goods/services that are fully or partly funded by government
money.

Trew said TPJ was a company whose financial sources are
foreign investors, mostly owned by British-based Thames Water
Overseas Limited.

The appeal was submitted to the Supreme Court on March 14.

TPJ has been a partner of city-run water operator PD PAM Jaya
since 1998. It serves tap water consumers in eastern Jakarta.