Water company fined over foul bid

Water company fined over foul bid

The Jakarta Post, Jakarta

The Business Competition Supervisory Commission (KPPU) fined on
Monday water operator PT Thames PAM Jaya (TPJ) Rp 1 billion
(US$111,111) for colluding in a service tender late last year.

KPPU member Soy M. Pardede, who presided over the trial, said
the commission also punished PT Interteknis Surya Terang (IST),
which won the tender last year, by prohibiting it from
participating in any tenders conducted by TPJ for two years.

He said TPJ and IST were guilty of violating Article 22 of Law
No. 5/1999 on monopolies and healthy business competition by
colluding to determine the outcome of the Rp 5 billion tender.

The incident began when TPJ held a tender to recruit some 307
security officers.

Soy said 16 companies submitted documents for prequalification
for the tender. The tender committee later announced that only 12
of the companies, including PT Gardatama Nusantara, which lodged
the complaint that led to the trial, fulfilled all the necessary
requirements.

Thames PAM Jaya included IST in the next stage of the tender
process even though it did not submit documents for
prequalification.

"Such practices are against healthy business competition," Soy
said when reading the ruling.

The KPPU also ordered TPJ to repeat the tender, without
including IST. The commission also will monitor all of the
company's future procurements to prevent a repeat of this
incident.

IST lawyer Djuang Prastyanto said he would consult with his
client before responding to the ruling. "But we may lodge an
objection to the ruling."

Both TPJ and Gardatama refused to comment on the matter.

TPJ and IST have 14 days to respond to the verdict.

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