Three companies barred from Jakarta administration tender

Jakarta (ANTARA News) - The Business Competition Supervisory Commission (KPPU) has barred three companies from taking part in a tender for the procurement of goods and services for the Jakarta City Administration in two years after they had been proven involved in a collusion in the procurement of products with liquid crystal display (LCD) in 2006.

"The Commission also suggested the Jakarta City Administration to impose an administrative sanction on the goods and services procurement committee, the regional administration bureau, and the head of Administration Bureau covering the area of the regional administration secretary, in accordance of the law," Commission Chief Tresna P. Soemardi said here Friday.

The case came to the surface during a tender for the procurement of 267 products with liquid crystal displays which was won by PT Tiga Permata Hati with a bid of Rp5,185,860,900.

The tender was also joined by PT Buana Rimba Raya offering products of the same brand and technical specifications. The products -- Mega Power type ML 164 SE -- are supplied by sole distributor PT Sima Agustus.

The name of two companies taking part in the tender was used by Muhammad Bahri, Moh. Iqbal, Jeffry Bunyamin, who made the necessary bid documents for the two companies, so that the offered prices and the winner of the tender, can be arranged.

The collusion between the three companies, which also involved the goods and service procurement committee of the administrative bureau for Jakarta and environs, and the regional administrative bureau chief of the Jakarta City Administration.

Besides fining PT Sima Agustus (Rp250 million) and PT Tiga Permata Hati along with PT Buana Rimba Raya (Rp50 million each), the KPPU also barred Muhammad Bahri, Moh. Iqbal, and Jeffrey Bunyamin from taking part in the Jakarta City Administratioin tender.

KPPU also suggested the Jakarta City Administration to evaluate the recruitment of personnel involved in the tender for the procurement of goods and services to prevent collusive practices.

The Jakarta administration was also suggested to be more selective in accepting tender participants.