Legislators regret KKN practices in Caltex

Members of the House of Representatives (DPR) have regret reports of alleged KKN practices in the awarding of contracts at the oil mining giant PT Caltex Pasific Indonesia (CPI), Riau Pos reported on Monday.

Priyo Budi Santoso of the Golkar Faction at the House said that the oil giant had been unfair in the awarding of the contract for the development of the development of its Dense Wavelength Division Multiflier to support its telecommunications network in Riau province.

He said PT Surya Karsa Media Formasindo had been named as the winner of the contract for the telecommunication project although the company's was higher than those made by other competitors. According to Priyo PT Surya had been allowed to use double bids to enable it win the project. Pertamina had asked the company to cancel the contract due to such price manipulation, but Caltex ignored the warning, Priyo added.

Caltex however denied the charge saying that the tender of the telecommunications project did not break any regulations.

Poedyo Oetomo, a spokesman for the oil giant, said that PT Surya Karsa had been named as the winner of the tender because its bid of US$ 2.83 million was $18,000 cheaper than that made by its main rival PT Asia Karsa.

He acknowledged that PT Surya Karsa had made double bids but he said that one of the bids, which was set at $2.3 million was disqualified because it did not meet the bidding procedures. (*)