FROM THE MEDIA

The Audit Board suspects practices of unfair business competition in the tender process of procurement of goods and services electronically which tends to lead to conspiracy practices.

Member II of the Audit Board (BPK) Agus Joko Pramono stated that the audit as incorporated in the Report of Audit Result (LHP) on state high institutions often find weird and suspecting tender process.

The weirdness, he continued, is such as in a tender where the participants are the same but they use different company flags. In addition, in an electronic procurement of goods and services, there are several companies using the same internet protocol (IP) address.

These are things that we see in the audit process and are overlooked by other parties so that we have decided to partner with the Business Competition Supervisory Commission under a memorandum of understanding," he said, Tuesday (24/5).

This agreement, he continued, has the purpose to boost the synergy and harmony between BPK and KPPU in the performance of their respective duties and authorities in accordance with laws and regulations. This Agreement covers exchange of information, use of expert staff, education and training as well as dissemination and development of information system.

He continued that with the signing of this joint agreement BPK audits particularly related to alleged monopolistic practices and unfair business competition in the management and accountability of state finance are expected to be more effective and comprehensive considering that KPPU has the authority to conduct investigation against such cases.

BPK needs KPPU capacity to see whether or not a finding is indicated to be implicated with unfair business competition or monopoly. On the other hand, KPPU needs BPK to see more in depth and at the same time seek information on an alleged business competition," he said.

Thus far BPK has established a synergy with various agencies such as the Corruption Eradication Commission (KPK), and the Center for Reporting and Analysis of Financial Transaction (PPATK).

In the near future, BPK will establish a similar cooperation with several agencies such as Finance and Development Supervisory Agency (BPKP) and Goods/Service Procurement Policy Agency (LKPP).

BPK Chairman Harry Azhar Azis admitted that BPK often finds indication of collusion among participants of a tender on procurement of goods and services of central government, regions, State-Owned enterprises and are oftentimes committed by business players outside the scope and authority of BPK.

BPK Recommendations only touch the level of managers of state finance, but not touching the business players who actually play a relatively dominant role in violation of laws and regulations," he asserted.

LIMITED AUTHORITY

KPPU Chairman M. Syarkawi Rauf stated that in the aspect of law enforcement, KPPU has a very limited authority in punishing breaches of business competition. KPPU has the difficulty in collecting evidences as it is not granted with the authority to do searching, auditing or bugging.

Such addition of authority has been deliberated in the agenda of Draft Law on amendment to Law Number 5 Year 1999 in Commission VI of DPR. However, such process still needs several further deliberation meetings.

KPPU requires supports for collecting evidences. Therefore, we need the Audit Board [BPK] for their cooperation," he said after the signing of the memorandum of understanding between KPPU and BPK in Jakarta, Tuesday (24/5).

He is confident that with BPK’s assistance, evidences for investigation are easier to collect. The cooperation system in the handling of cases of project tender commences from the result of audit by BPK.

From the audit we can see indication of conspiracy in the working of a project. Based on the result of audit, KPPU will conduct further investigation by the investigator team.

In the Summary of Result of Semester Audit (IHPS) 1215, BPK found facts that at the level of the central government, particularly on the major issue of administrative irregularities at ministries and agencies, there are items on procurement of goods/services that do not conform to applicable provisions with 68 cases in 35 entities.

There are four sub items which include the method of procurement goods/services not conforming to the provision, not the entire tender process being carried out, indication of conspiracy between participants of procurement tender, and the procurement committee being not careful in performing its duties. (Gajah Kusumo)

Bisnis Indonesia (Wednesday, 25 May 2016 Page 3)