Improve Goods, Services Procurement System

KOMPAS/HERU SRI KUMORO

South Sulawesi Governor Nurdin Abdullah left the room after a press conference held by the Corruption Eradication Commission (KPK) at the KPK Building, Jakarta, Sunday (28/2/2021) in the morning.

The procurement of goods and services in several regions is still deemed problematic. The recent arrest of South Sulawesi Governor Nurdin Abdullah seems to confirm this. Improvement is needed, especially with regard to transparency.

JAKARTA, KOMPAS —The alleged bribery related to infrastructure projects involving South Sulawesi Governor Nurdin Abdullah shows that the public procurement of goods and services is still problematic. Systematic improvements, especially with regard to transparency through the use of an e-catalogue, is urgent.

So far, the use of an e-catalogue in the procurement of goods and services is limited to projects worth less than Rp 50 million, but the Corruption Eradication Commission (KPK) is seeking ways to achieve transparency in infrastructure projects worth billions of rupiah.

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Following his arrest on Saturday, the antigraft body has named Nurdin Abdullah a suspect in a bribery case pertaining to the procurement of goods and services, licensing, and the construction of infrastructure projects in the South Sulawesi provincial government in the 2020-2021 period.

The commission confiscated Rp 2 billion allegedly given by Agung to Nurdin through Edhy.

The KPK also named Edhy Rahmat, a secretary at the South Sulawesi Public Works and Spatial Planning Agency, and Agung Sucipto, a director of Bulukumba-based construction company PT Agung Perdana Bulukumba, as suspects in the case. The commission confiscated Rp 2 billion allegedly given by Agung to Nurdin through Edhy. The KPK suspects that the money was not the first sum to be allotted.

The arrest of Nurdin – who has been celebrated for his antigraft stance – has surprised many. He received several awards, including the prestigious Bung Hatta Anti-Corruption Award in 2017.

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KPK head for graft prevention and monitoring Pahala Nainggolan has described Nurdin as one of the “cleanest” regional leaders. In fact, a week ago, Nurdin agreed to create an e-catalogue for the province for procurement projects below Rp 50 million.

KOMPAS/AGUS SUSANTO

Pahala Nainggolan

According to Pahala, the procurement carried out by Nurdin was executed through an auction, as its value was above Rp 200 million. The problem, however, lies in the procurement system. “The system is weak. It still can be breached,” Pahala said on Sunday (28/2/2021).

Just a formality

Pahala further said that the procurement of goods and services at the regional level was conducted through working groups mostly made up of nonpermanent employees. Such a setting made it easy for them to grant the wishes of regional leaders or regional agency heads. Moreover, the Goods/Services

Procurement Work Unit (UKPBJ) is also not running. In reality, the prescribed procurement system is not implemented.

A number of projects have been controlled by region heads, regional legislative councils and political parties. Pahala said that they had appointed a contractor to work on the projects. A “companion fee” is usually allotted during the procurement process, which kept other contractors away from entering the project.

On the other hand, the private sector distributes the procured projects to companies, as they are united in the same association, which makes the bidding process a mere formality. As a result, there is no healthy competition.

E-catalogues were only used to procure smaller goods/services worth less than Rp 50 million.

Pahala said it was not easy to improve the system of goods and services procurement. E-catalogues were only used to procure smaller goods/services worth less than Rp 50 million.

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Meanwhile, with regard to the procurement of goods/services of higher value, the KPK is working toward having the proposed project budgets publicly displayed on a website to create transparency and keep the price reasonable.

KOMPAS/HERU SRI KUMORO

Corruption Eradication Commission officers show evidence of a corruption case involving the Governor of South Sulawesi Nurdin Abdullah at a press conference held by the Corruption Eradication Commission (KPK) at the KPK Building, Jakarta, Saturday (27/2/2021).

Indonesia Corruption Watch (ICW) researcher Egi Primayogha said Nurdin’s case showed the importance of thoroughly overseeing infrastructure projects. According to Egi, public scrutiny must not be weakened, including scrutiny of public officials deemed “clean”.

Egi said there was always a wide opportunity for fraud, as public officials had great authority. Supervision, therefore, was crucial during the large-scale development of infrastructure projects carried out by the government.

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Syarif Hidayatullah State Islamic University (UIN) professor Azyumardi Azra said that, during his tenure as Bantaeng regent, Nurdin’s political network had still been relatively limited. He, therefore, could maintain his integrity. That had changed when Nurdin became the governor of South Sulawesi, which had made his political environment more complex. He had then failed to maintain his integrity.

KOMPAS/FABIO MARIA LOPES COSTA

Professor Azyumardi Azra.

According to Azyumardi, public officials who were once lauded for their antigraft stance can lose their integrity if they are not able to deal with a corrupt political and business environment. They can easily be dragged into committing corrupt practices. “Systems, political processes, people and groups can be corrupt. However, if public officials are strong enough to maintain their integrity, they can stay away from corruption until the end of their term in office,” Azyumardi said.

Ready to be investigated

The spokesperson for the South Sulawesi governor, Veronica Moniaga, said Nurdin’s family respected and was willing to cooperate with the legal process conducted by the KPK. If requested, Nurdin’s family was also willing to provide information for the antigraft body.

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Apart from the Rp 2 billion, Nurdin is also suspected of accepting bribes from other contractors. At the end of 2020, Nurdin allegedly received Rp 200 million. In early February this year, Nurdin, through his adjutant Samsul Bahri, allegedly received Rp 2.2 billion. In mid-February, Nurdin yet again allegedly received Rp 1 billion through Samsul.

In this situation, however, the party continued to support the KPK in eradicating corruption.

Meanwhile, Indonesian Democratic Party of Struggle (PDI-P) secretary-general Hasto Kristiyanto claimed Nurdin was a good person. In this situation, however, the party continued to support the KPK in eradicating corruption.

According to Hasto, Nurdin had already contacted the PDI-P’s South Sulawesi branch head, Andi Ridwan Wittiri, and said he would be responsible for his actions. Nurdin said he had not done what he was suspected of.

KOMPAS/ALIF ICHWAN

Hasto Kristiyanto

After being named a suspect by the KPK, Nurdin said he would willingly undergo the legal process. He said he had no idea what was happening. “Edhy made transactions without me knowing. That is all. I have absolutely no idea,” Nurdin told reporters.

(This article was translated by Camilia Adianti).