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Taken for a Ride

Translator

Editor

12 March 2014 15:50 WIB

TEMPO.CO, Jakarta - Seawater was not the reason for the dilapidated state of hundreds of Transjakarta buses imported from China. Udar Pristono, when he headed the Jakarta Transportation Service, offered this arbitrary excuse after it turned out that several components of the vehicles were rusty. The buses had been transported by sea, and had been struck by huge waves and covered with salt water, he claimed.

This excuse is nothing more than a deception because the corrosion had not just affected the sides of the buses, the area most vulnerable to seawater spray. An examination of the buses revealed far more serious problems. In addition to rusty battery tops, radiators and wheel hubs, there were leaking air-conditioners, broken fan-belts, non-functioning fuel indicators, fungus in compressors, unsealable flexible harmonica connectors in bendy-buses and many other flaws. In short, these buses were not fit for service.

In the wake of this scandal, Jakarta Governor Joko Widodo was correct in firing Udar, the official responsible for the acquisition of the buses, which according to City Hall senior officials, was done through an open tender. Another official who should have known enough to prevent this state of affairs from the outset is Franky Mangatas, the Jakarta chief inspector. If the project had been properly monitored from the beginning, the procedural irregularities could have been avoided. Only after the fuss over the corrosion started did these officials run around conducting a survey of the problems.

The internal oversight body did not have the courage to name the officials guilty of misconduct in the more than Rp1 trillion project. It only referred to indications of irregularities when the tender was opened, the winner announced and the goods received. These irregularities must be investigated. It is possible that officials at the inspectorate were involved in the chaos over the tender of these flawed buses.

Hopes for the way forward rest on the Finance Development Controller (BPKP), which last year recommended that the tender process be halted. BPKP must now calculate the losses to the state as a result of this scandal. These buses can no longer be used, and some of them broke down on their first day in service. Moreover, the buses turned out to be overpriced, compared to the cost of similar vehicles made in Europe or the United States.

It is suspected that the tender was rigged. The process was deliberately planned to limit the participating number of suppliers. According to our source, two companies that lacked competence-one of them a construction company-won the contract to supply the bendy-buses. These two companies subcontracted the project to the sole agent for the Chinese-made buses.

This is clearly a felony and must be thoroughly investigated. The BPKP findings can later be used to support the ongoing investigation by the Corruption Eradication Commission (KPK). This type of collusion used exactly the same time-honored methods of bogus tenders and markups. The KPK should not find it difficult to investigate this, and whoever is proven guilty of involvement should be punished accordingly.

This bitter experience must not be repeated. This type of business must be managed professionally, not delegated to a management unit under the control of the Transportation Service. The Jakarta administration needs to establish an independent, province-owned enterprise. The Transjakarta system is the world's largest network of its type. It needs at least 650 buses to serve its 12 corridors and more than 184 kilometers of routes.

The procurement system of buses should be changed in order to obtain cheaper vehicles through a more accountable tender process. The buses could be managed by a transjakarta company, using a rent-buy or lease system. Let the service supplier be responsible for the costs of maintenance. The government should concentrate on the management of routes: the timely arrival of buses at stops so they do not become overcrowded with passengers.

Forget the rusty buses from China. Look instead at well-known and proven suppliers from Europe and the US. Although they might seem expensive at first, with a longer lifetime the unit cost will end up being much less. There must be no more temptations to buy cheap, if it ends in disaster.

Governor Jokowi must be firm when he deals with the corrupt officials responsible for the procurement of these dilapidated buses. Allegations that former members of his gubernatorial campaign team were involved must be clarified. Given that only the initial deposit has been paid so far, there is no need to pay the full amount to the 'crooked' winners of the bid. The Jakarta administration should not have to bear the risks resulting from those people's illegal and dishonorable acts. (*)

Read the complete story in this week's edition of Tempo English Magazine



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