Two companies fined in illegal sugar auction
Two companies fined in illegal sugar auction
The Jakarta Post, Jakarta
The Business Competition Supervisory Commission (KPPU) ordered
two companies to pay Rp 1 billion (US$98,232) each in fines on
Monday after it found that they colluded in an auction of
illegally imported Thai sugar.
The commission also banned them from joining in similar
auctions in the next two years.
KPPU ruled that sugar refining companies PT Angels Products
(AP) and PT Bina Muda Perkasa (BMP) were guilty of colluding in
the auction of over 56,000 tons of sugar illegally imported from
Thailand, which was confiscated by the North Jakarta Prosecutors'
Office last year.
The prosecutors' office auctioned the sugar on Jan. 4 and AP
won the bidding at a price of Rp 118 billion.
"The auction hampered healthy business competition because,
first, the committee announced the auction plan only at one local
media Harian Jakarta and second, it only gave two working days to
participating companies to fulfill all the requirements to join
the auction, including the payment of Rp 50 billion in
collateral," said KPPU chairman Syamsul Maarif.
"This indicates that the committee intentionally arranged the
auction so that only the two companies would participate."
KPPU also ruled that Sukamto Effendy, a businessman believed
to have links with both companies, had to pay Rp 1 billion in
fines.
"He was present at the auction on behalf of BMP, but our
investigators found that he also had business ties with AP. It
means Sukamto participated in the auction through both firms. No
real competition took place during the auction," Syamsul stated
as he read the ruling.
The commission also urged the Attorney General's Office to
probe the auction's project officer Susanto for his role in
arranging the collusion.
According to the ruling, the auction violates Article 22 of
Law No. 5/1999 on Anti Monopoly Practices and Unfair Business
Competition. The law stipulates that an auction should be
announced within six working days in a number of national media
to achieve optimum prices of auctions or tenders.
Syamsul said the commission's investigators also found that
BMP should have not participated in the auction as it only had a
working capital of Rp 100 million with one director and one
commissioner and no employees. It never carried out any sugar
refining activities during the last two years either, as required
in the auction.
"Our investigators also found that BMP's office was housed at
its director's residence. These facts show that the company had
no competence in participating in the auction," KPPU member Soy
M. Pardede said, adding that it was obvious that the auction was
arranged to let PT AP win.
Rico Pandeirot, a legal representative of AP, BMP and Sukamto,
said his clients would soon appeal the ruling.
"If the process of the auction violated the regulation, my
clients should not be held responsible because they had fulfilled
all the requirements to participate in the auction," he said.
(006)
The Jakarta Post, Jakarta
The Business Competition Supervisory Commission (KPPU) ordered
two companies to pay Rp 1 billion (US$98,232) each in fines on
Monday after it found that they colluded in an auction of
illegally imported Thai sugar.
The commission also banned them from joining in similar
auctions in the next two years.
KPPU ruled that sugar refining companies PT Angels Products
(AP) and PT Bina Muda Perkasa (BMP) were guilty of colluding in
the auction of over 56,000 tons of sugar illegally imported from
Thailand, which was confiscated by the North Jakarta Prosecutors'
Office last year.
The prosecutors' office auctioned the sugar on Jan. 4 and AP
won the bidding at a price of Rp 118 billion.
"The auction hampered healthy business competition because,
first, the committee announced the auction plan only at one local
media Harian Jakarta and second, it only gave two working days to
participating companies to fulfill all the requirements to join
the auction, including the payment of Rp 50 billion in
collateral," said KPPU chairman Syamsul Maarif.
"This indicates that the committee intentionally arranged the
auction so that only the two companies would participate."
KPPU also ruled that Sukamto Effendy, a businessman believed
to have links with both companies, had to pay Rp 1 billion in
fines.
"He was present at the auction on behalf of BMP, but our
investigators found that he also had business ties with AP. It
means Sukamto participated in the auction through both firms. No
real competition took place during the auction," Syamsul stated
as he read the ruling.
The commission also urged the Attorney General's Office to
probe the auction's project officer Susanto for his role in
arranging the collusion.
According to the ruling, the auction violates Article 22 of
Law No. 5/1999 on Anti Monopoly Practices and Unfair Business
Competition. The law stipulates that an auction should be
announced within six working days in a number of national media
to achieve optimum prices of auctions or tenders.
Syamsul said the commission's investigators also found that
BMP should have not participated in the auction as it only had a
working capital of Rp 100 million with one director and one
commissioner and no employees. It never carried out any sugar
refining activities during the last two years either, as required
in the auction.
"Our investigators also found that BMP's office was housed at
its director's residence. These facts show that the company had
no competence in participating in the auction," KPPU member Soy
M. Pardede said, adding that it was obvious that the auction was
arranged to let PT AP win.
Rico Pandeirot, a legal representative of AP, BMP and Sukamto,
said his clients would soon appeal the ruling.
"If the process of the auction violated the regulation, my
clients should not be held responsible because they had fulfilled
all the requirements to participate in the auction," he said.
(006)