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Antigraft, antimonopoly bodies join forces

Source
Jakarta Post - February 7, 2006

Jakarta – The Corruption Eradication Commission (KPK) and the Business Competition Supervisory Commission (KPPU) entered into a collaborative arrangement Monday to eliminate corruption and unfair competition in government and state-enterprise procurements.

The memorandum of understanding was signed by KPK director Taufiqurahman Ruki and KPPU director Syamsul Ma'arif at the KPPU headquarters in Jakarta.

Taufiqurahman said the MoU was regarded as being of major importance by the KPK as more than 70 percent of the cases investigated by the commission have involved unfair tenders in which officials and businesspeople colluded for their mutual enrichment.

Meanwhile, Syamsul expressed hope that with the signing of the MoU, his commission would be able to help the KPK eliminate corruption from government procurements.

"More than 90 percent of the unfair tenders we have investigated have involved people other than business players, such as government officials and (procurement) committee members," he said, adding that the KPPU had no power to take action against non-business players.

He expressed the hope that after the signing of the MoU, the two commissions would be able to assist each other in implementing the 1999 Antimonopoly Law and the 2002 Anticorruption Law.

"The KPK will follow up on our findings of involvement by corrupt officials in unfair procurements and tenders," he said.

A World Bank report found that between 10 and 50 percent of corruption cases in Indonesia involved government procurements of goods and services.

Indonesian Procurement Watch chairman Komarudin Hidayat said recently that the lack of transparency in government procurements caused leakage of up to 60 percent in the state budget. "This figure is unbelievable," he said.

Syamsul said the high-profile graft case involving the procurement of ink by the General Elections Commission during the 2004 elections was a good example of a case where the KPK and KPPU could collaborate.

The KPK is currently investigating alleged graft in the sale of two Pertamina oil tankers in 2004. "We're investigating the case, but we can't give you any details as yet," KPK deputy director Amien Sunaryadi told reporters Monday.

In March 2005, the KPPU said Pertamina and three of its business partners were guilty of colluding with Bermuda-based Frontline Shipping Ltd. in the sale of the two tankers.

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