Govt asked not to re-tender Bukaka's project
Monday, July 3 2000 - 03:00 AM WIB
Some members of the House of Representatives have called on the government not to retender the controversial power transmission project linking Klaten in Central Java and Tasikmalaya, West Java until it settled its dispute with the former contractor, Bukaka Teknik Utama, Republika reported on Monday.
Irwan Prayitno, the chairman of the Commission VIII in charge of electricity and investment, said last week, that the retender of the project should be carried only after the government had cleared its dispute with Bukaka, which had been disqualified from the contract due to alleged corruption and collusion practices.
"Both the Minister of Mines and Energy and the president of state owned electricity company PLN said that Bukaka was not involved in corruption," he said. "If the project is retendered it could become a bad precedent for the future power projects," he added.
The government cancelled the contract awarded to PT Bukaka Teknik Utama to develop the US$75 million power transmission network between Klaten in Central Java and Tasikmalaya, West Java, due to alleged KKN practices in the obtaining the contract.
Former minister of trade and industry Jusuf Kalla, the owner of the company denied the KKN allegations charged by the President, who is more popularly called by his nickname Gus Dur. He accused the government's move to annul his company's contract was made to pave the way for Gus Dur's crony to take over the project.
Gus Dur has issued conflicting statements about the reason behind the suspension of the contract. First he said that it was suspended due to KKN practices and later said that the suspension was made because Bukaka "is financially unfit". Meanwhile the ministry of mines and energy said that the contract was cancelled because the company breached the procedures when bidding for the project.
Kalla, who was dismissed by Gus Dur due to the KKN allegations, denied all the accusation, saying the charges were made only to justify the suspension decision. (*)