TEMPO.CO, Jakarta - Richard Joost Lino's life has lately resembled a roller coaster ride. At a seminar in an upscale hotel not so long ago, he spoke on the country's economic situation, boasting that Pelindo II, the state-owned company he headed, was a solid entity worth trillions of rupiah. At the same seminar, Vice President Jusuf Kalla, clearly aware that Lino was under suspicion for corruption, lamented that he was often seen as backing Lino. In reality, Kalla joked, 'backing' meant he was behind Lino, "but I'm always ahead of Pak Lino."
Unfortunately, Lino was not to enjoy his reputation for long. In mid-December, the Corruption Eradication Commission (KPK) indicted him for corruption, and Pelindo II's board of commissioners abruptly dismissed him from office. He filed for a pretrial hearing, but it will be an uphill battle.
Lino's troubles had been brewing for some time.His inflexible leadership style and reckless risk-taking often caused problems and finally led to corruption allegations in the procurement of quay container cranes (QCCs) for the Palembang, Pontianak and Panjang, Lampung, ports. The case was first reported to the KPK on February last year by former Pelindo II employees whom Lino had fired, although he claimed they had resigned.
He allegedly committed at least two violations. First, he made a direct vendor selection.On the pretext that the nine tenders held between 2007 and 2010 had failed to come up with a winner,he appointed Chinese manufacturer Wuxi HuaDong Heavy Machinery (HDHM) as the supplier. That was a violation of government tender regulations, although Lino argued that he had a ministerial decree to back his action.
Then, he changed the crane's specifications, allegedly to favor HDHM. At the beginning, the three ports had chosen a single 40-ton lift-type crane with a 40-ton capacity. But Lino caused complications by changing it to a twin-lift with 61-ton capacity. His reasoning was that a single-lift was only capable of handling a 20-foot container, while the twin-lift could move two 20-foot containers. He also said the Chinese-made twin-lift was priced at US$5.9 million, much cheaper than Barata's favored US$6.4 million single-lift crane.
But the problem did not lie in pricing alone. The twin-lift crane turned out to be unsuitable for Pontianak and Palembang ports because they could not be put to their optimum use. In order to back up his choice of HDHM, Lino also attached a separate maintenance contract to the tender document. HDHM, Lino said, offered a five-year, after-sales maintenance service that was more competitive than the other suppliers.
Lino's arbitrary decisions, which sources claim his subordinates in Pelindo II tried to block, resulted in revenue losses to the state. The exact amount is still being calculated by the Finance and Development Supervisory Agency (BPKP).
In addition to proof of Lino's procedural and administrative violations, the KPK must gather more convincing evidence that Lino's indictment is legally justified. Besides requiring a legal argument to oppose his pretrial motion, the anti-graft agency must be able to trace the flow of funds to Lino or other individuals, and also prove that his claims of keeping down the costs of the QCCs were invalid.
If the KPK manages to find illicit funds in Lino's pockets, it will be one step ahead of the police investigating Pelindo II's procurement of the 10 mobile cranes. A separate case handled by the National Police crime investigation division in 2013 has so far only implicated Pelindo II technical director Ferialdy Noerlan. Lino has not been linked to that case.
Lino can be credited with quite a few achievements. His significant role in developing Pelindo II is undeniable. In fact, he was among 41 candidates pegged for ministerial positions in President Joko Widodo's cabinet last year, even though the KPK gave him a red mark for his suspected involvement in the crane fiasco. Lino failed to make the list and at the anti-corruption court sooner or later, Lino must also prove his innocence beyond dispute. (*)
Read the complete story in this week's edition of Tempo English Magazine
