Shoveled: Garuda Boss Fired for Smuggling Harley Davidson Bike and Brompton Bicycles

Jakarta Globe, NUR YASMIN, December 5, 2019

The disassembled parts of a smuggled Harley Davidson Shovelhead are shown 

by customs officials in Jakarta on Thursday. (B1 TV Photo)

Jakarta. Flag carrier Garuda Indonesia's president director I Gusti Ngurah Ashkara is soon to be fired for allegedly smuggling a Harley Davidson motorcycle and two Brompton bicycles, State-Owned Enterprises Minister Erick Thohir said on Thursday.

The items were smuggled inside Garuda's brand new Airbus A330-900 Neo being delivered from its factory in Toulouse, France, in mid-November.

There were 22 passengers on the plane and four of them were Garuda directors: the president director, better known as Ari Ashkara, technical and services director Iwan Joeniarto, cargo and business development director Mohammas Iqbal and human resources director Heri Akhyar.

"As the SOE Minister, I will dismiss the Garuda president director. We will not stop there; we will look for other people who might have been involved in this case as well," Erick told a press conference in Jakarta.

The used Harley Davidson motorcycle had been disassembled prior to delivery and smuggled as parts. Customs officials found them wrapped in 15 boxes inside the plane's cargo area.

The Brompton bikes and accessories were found in three other boxes.

Erick said an audit by the customs office showed the smuggled items belonged to the president director, despite the baggage claim tags carrying different names.

Ari had instructed his subordinates to find him a classic Harley Davidson Shovelhead from the 1970s.

The used motorcycle was purchased in April 2019 with the help of a Garuda finance manager in Amsterdam.

"It's really sad that this [personal] transaction had to drag down an SOE," Erick said.

The Coordinating Minister for Maritime Affairs and Investment Luhur Binsar Pandjaitan said during a visit to Tongxiang, China, on Thursday that he fully supported Erick's decision.

"[An act like] this will hurt our investment climate," he said.

Finance Minister Sri Mulyani Indrawati meanwhile said smuggling the Harley and the Bromptons had cost the country up to Rp 1.5 billion ($107,000) in unpaid taxes.

"The Harley bike is valued at Rp 800 million and the Brompton bicycles cost Rp 50-60 million each," Sri Mulyani said.

"Everyone should always obey existing regulations," she told reporters.

Crisis-hit Nissan CEO resigns amid pay probe

Yahoo – AFP, Etienne BALMER, 9 September 2019

Reports in Japan say Nissan CEO Hiroto Saikawa will step down over
issues with his pay

Nissan's CEO said Monday he will step down next week, deepening the crisis at the Japanese car giant still reeling from the arrest and ouster of former chief Carlos Ghosn's over alleged financial misconduct.

It is yet another blow for the firm that has seen sales plunge and been forced to slash jobs since Ghosn's stunning arrest for allegedly hiding part of his salary from official documents to shareholders.

Hiroto Saikawa said he would leave the company on September 16, following the results of an investigation into excess pay he received after altering the terms of a bonus.

Saikawa is suspected of improperly adding 47 million yen ($440,000) to his compensation under a scheme in which directors can earn a bonus if their company's share price rises above a certain level in a set period.

Nissan officials were keen to stress that there was no illegality but that he should not have delegated the task to a junior executive.

"At the end of the day, the operation which should have been carried out by the president himself was... delegated to others, which is a violation of the rules," said Motoo Nagai, a board member.

Saikawa admitted handing the task to a company secretariat and said he was "not proud" of this but insisted it was not the same as the misconduct of which Ghosn is accused.

He was it was "totally different from the intentional wrongdoing that was uncovered" during the internal Nissan probe into Ghosn and his right-hand man, US executive Greg Kelly.

The controversial "share appreciation" scheme has now been scrapped, the Nissan board announced.

Current chief operating officer, Yasuhiro Yamauchi, will take over as acting CEO on September 16, when Saikawa officially leaves, and Nissan hopes to find a permanent replacement by the end of October.

Alleged overpayments

The carmaker is currently undergoing an overhaul intended to strengthen governance after the Ghosn scandal.

In June, Nissan shareholders voted in favour of various measures including the establishment of three new oversight committees responsible for the appointment of senior officials, pay issues and auditing.

They also approved the election of 11 directors as the firm restructures, among them two Renault executives as well as Saikawa.

The reforms were designed to put Nissan on a more stable footing after the arrest of Ghosn, who has been sacked from his leadership roles at the Japanese firm and others.

He is awaiting trial on charges of under-reporting millions of dollars in salary and of using company funds for personal expenses.

Ghosn has denied any wrongdoing and accuses Nissan executives opposed to his plans to further integrate the firm with France's Renault of plotting against him.

'Dark side'

Saikawa, a one-time Ghosn protege, turned sharply against his former mentor after his arrest, referring to the "dark side" of the tycoon's tenure and accusing him of accruing unchecked power that allowed his alleged wrongdoing to go undetected.

But the CEO himself came under pressure in the scandal's wake, facing calls to resign from shareholders who view him as too heavily associated with the Ghosn era.

And while he resisted calls to step down immediately, he has always said he planned to hand over the reins after Nissan is back on track.

The Ghosn scandal has proved disastrous for Nissan, which in July announced that net profit plunged nearly 95 percent in the April-June quarter, and confirmed it would cut 12,500 jobs worldwide.

The Japanese firm has also struggled to steady its relationship with Renault as part of a tripartite alliance with Mitsubishi Motors that Ghosn founded and once led.

Asked how he felt towards his once-mentor Ghosn and Kelly, Saikawa said he believed their actions had put the company in the difficult position in which it now finds itself -- with hardship for customers, staff and dealers.

"This is the biggest responsibility... and I think they should think about this, they should feel bad about this. But they haven't expressed any apology for creating this situation," said Saikawa.

"I want Mr Kelly and Mr Ghosn to feel bad about the situation they have created."

Nut rage sister faces fruit juice questions in S. Korea

Yahoo – AFP, Park Chan-kyong, 1 May 2018

The daughters of Korean Air chairman Cho Yang-ho have both resigned from
their company posts following separate controversies

The stony-faced daughter of a Korean billionaire, whose older sister was brought low by the "nut rage" scandal, apologised Tuesday as she reported to police for questioning over allegations she sprayed a business associate in the face with fruit juice.

"I'm really sorry for causing concern," Cho Hyun-min repeatedly told a crowd of journalists outside the Gangseo police station in Seoul, without admitting to any specific actions.

Cho, who police said is accused of using violence and obstructing business, is the daughter of Hanjin Group chairman Cho Yang-ho.

Hanjin is among the country's 15 biggest business groups, owner of flag carrier Korean Air, logistics and transport firms, and with interests in information technology and hotels.

It used to own Hanjin Shipping, once one of the world's biggest shipping firms, which was declared bankrupt last year.

The younger daughter's police interrogation is only the controlling family's latest brush with the law, with a series of scandals making them some of the country's most notorious super-wealthy.

South Korea's economy -- the world's 11th-largest -- is dominated by a series of giant business conglomerates known as chaebols.

In the past, the chaebols contributed to the country's fast economic growth, but as the founders' sons and grandsons took over they expanded into every corner of business, and now stand accused of suffocating smaller companies and hampering innovation.

They have long had murky ties with political authorities -- Samsung scion Lee Jae-yong was jailed last year for his role in the corruption scandal that brought down president Park Geun-hye, although most of his convictions were quashed on appeal.

Many chaebol families retain only a small ownership stake in their companies, but maintain control through complex webs of cross-shareholdings between subsidiaries, and rapid promotions for family members -- some of whose antics have battered the firms' images.

"The Cho family is one of the most vilified chaebol families, with multiple family members implicated in alleged bad behaviour," Chung Sun-sup of online information service chaebol.com told AFP.

Cho Hyun-Ah (C) made global headlines in 2014 for forcing two flight attendants to 

kneel and beg for forgiveness after she was served macadamia nuts in a bag rather

 than a bowl

'Family misdeeds'

In the most infamous incident, the chairman's elder daughter Cho Hyun-ah made global headlines in 2014 for forcing two flight attendants to kneel and beg for forgiveness after she was served macadamia nuts in a bag rather than a bowl.

She ordered the Seoul-bound flight back to the gate so one of them could be ejected in an incident quickly dubbed "nut rage".

Since the accusations against her sister emerged, hundreds of Korean Air personnel have joined an online chat room to allege Cho family misdeeds against employees and domestic staff.

Police said last week they were investigating allegations that the sisters' mother Lee Myung-hee had herself abused employees verbally and physically.

Korean Air said the company had no comment.

The family are also accused of using Korean Air planes to smuggle luxury goods into the country to avoid import duties.

Chairman Cho Yang-ho -- who last year faced accusations of embezzling company funds, although prosecutors rejected a request for his arrest -- last month apologised for the "immature" behaviour of his daughters, both of whom resigned from their executive posts.

The row could yet impact Korean Air itself, and other conglomerates.

Thousands of petitioners went to the presidential Blue House homepage, urging the government to ban the airline from using "Korean" in its name and to expel Cho Hyun-min, who was born in the US and is an American citizen.

Under South Korean immigration law, foreigners found to have disturbed social order or harmed public safety can be ordered to leave the country.

Former lawmaker Park Won-suk said the Cho family controversies would serve as a "catalyst" for a reform drive.

President Moon Jae-in was elected last year partly on promises to reform the chaebols -- a pledge various politicians have made many times before.

There has been little action so far, but Chung noted that the justice ministry last week introduced a bill to grant minority shareholders a greater voice in appointing board members.

The move was "apparently in sync with mounting public demand for chaebol reform triggered by the Cho case", he said.

Daughter of Korean billionaire faces ‘fruit juice’ inquiry after older sister was brought low by 'nut rage' scandal https://t.co/0r9WjgqmN8
Head of the family, Cho Yang-ho (pictured) is one of South Korea's wealthiest men pic.twitter.com/Y4CLzk10Gy

— AFP news agency (@AFP) May 1, 2018

Dutch lorry maker DAF fined €753m for cartel forming over 14 years

DutchNews, July 19, 2016

Photo: Alf van Beem via
Wikimedia Commons 

The European Commission has fined a group of truck manufacturers, including Dutch firm DAF, a total of €2.93bn for operating as an illegal cartel for 14 years. 

The commission said in a statement that MAN, Volvo/Renault, Daimler, Iveco, and DAF had broken EU antitrust rules by colluding on truck pricing and on passing on the costs of compliance with stricter emission rules. The cartel operated between 1997 and 2011, the commission said. 

Eindhoven-based DAF was given the second biggest fine of nearly €753m. 

MAN was not fined as it revealed the existence of the cartel to the Commission. All companies acknowledged their involvement in the cartel and agreed to settle the case.

‘It is not acceptable that MAN, Volvo/Renault, Daimler, Iveco and DAF, which together account for around nine out of every 10 medium and heavy trucks produced in Europe, were part of a cartel instead of competing with each other,’ competition commissioner Margrethe Vestager said in a statement. 

DAF has been part of American listed industrial group PACCAR since 1996.

Related Article:

EU fines truckmakers for 14-year cartel

Ministry Bans Sale of Plane Tickets at Airports

Jakarta Globe, Feb 02, 2015

Passengers check in for an AirAsia flight at Jakarta's Soekarno-Hatta International
Airport, in this Dec. 28, 2014, file photo. (Reuters Photo/Pius Erlangga)

Jakarta. In a move aimed at improving the public service, the Transportation Ministry will ban the sale of flight tickets at airports throughout the country.

“There will be no more ticket counters at [Soekarno-Hatta International Airport's] terminal 1, 2 and 3 [from Feb. 15],” Yudis Tiawan, a spokesman for state-owned airport operator Angkasa Pura II, was quoted as saying by Tempo.co on Monday.

Yudis explained that the move was aimed primarily at ending the widespread practice of ticket buying through middlemen (calo) at the airport.

The ticket counters operating at Soekarno-Hatta are mostly selling tickets for domestic destinations. People will now have to obtain their tickets before heading to the airport.

Yudis said all airlines selling tickets at airport counters have been notified of the rule change, which is based on a regulation issued by the Transportation Ministry on Dec. 31, 2014.

The regulation also stipulates that unregistered taxis are not allowed to operate at the nation’s airports and that smoking is banned in all airside areas (apron, runway, taxiway) and places that have direct access to these areas.

“This instruction applies for all airports in Indonesia and is meant to improve the public service,” Yudis said.

Private jet market hit by China's anti-graft campaign

Want China Times, Staff Reporter 2015-01-26

A private jet in Zhuhai, Guangdong province, July 5, 2014. (File photo/CNS)

China's anti-corruption campaign has hurt the previously booming market for private jets, but the temporary setback may also lead to the more measured development of the sector, China Entrepreneur magazine reports.

China's private jet market has seen rapid growth since the 2008 Olympics in Beijing, and the Greater China region posted an annualized growth rate of 34% at the end of 2013 compared with the global rate of 5%, the magazine noted.

This rapid growth attracted different players to the business, including airline companies, leasing companies and other private enterprises. However, the government's crackdown on corruption has hit the private jet business, and it has become a game of endurance for companies that invested in the sector in terms of surviving in a race that initially offered profits similar to a gold rush, the report said.

"We all believe the market will rebound in the future but at the moment we need to wrap up to stay warm through the cold winter," said Jin Yao, president of Dream Jets, a company established in 2012 to operate chartered private jet services.

Xu Shaoyi, a venture capital fund investor who invested in Dream Jets, said the company had decided to focus on chartered services and consultation services for the purchase of private jets because of the heavy costs involved in buying and operating the aircraft independently. "The sector may be flourishing but it has not yet yielded returns. It is most important to avoid investing too much but rather to maintain a presence and accumulate experience," Xu said.

The government's introduction of stricter rules to curb the lavish spending of officials has led to the cancellation of existing orders of private jets by both state-owned and private companies. State-owned companies cancelled their orders in adherence to the government's rules, while private companies made the same decision since the private jets were meant to carry company executives and government officials, the magazine said.

Since the manifest of all private jet passengers must be submitted to the aviation authorities, no government official dares to take flights offered by private companies for fear of falling foul of the anti-graft drive, the magazine added.

However, Jin remains positive about the sector's future, saying that the current downturn may help eliminate the business' image of being a luxury service. "In the past, everyone bought irrationally. Many people only chose to buy the most expensive premium models," Jin said, noting that American companies generally start by buying secondhand planes rather than new.

While the government is also attempting to resolve the issues restricting the development of the business, which include a lagging infrastructure and the applications required before each flight, Dream Jets is exploring other opportunities.

"We want to become the Uber of private jets," Jin said, noting that a seat on a chartered private jet can be cheaper than a first-class ticket on international long-haul flight on some routes.

Sri Lanka flag-carrier ditches ex-president's 'vanity' airport

DailyMail – AFP, 17 Jn 2015

Cultural performers dance after the landing of a Sri Lankan airlines Airbus A-340
carrying President Mahinda Rajapakse, the first passenger at the new Mattala
 Rajapaksa International Airport in Mattala, on March 18, 2013 (Ishara S.Kodikara/
AFP/File)

  

Sri Lanka's national airline on Saturday announced it will stop all flights to the country's second international airport built and named after Mahinda Rajapakse, after he was defeated in last week's presidential elections.

Sri Lankan Airlines said operating flights via the Rajapakse International airport in the former president's home constituency of Hambantota was a huge drain on the already heavily debt-laden carrier.

The state-owned airline -- under new management after new President Maithripala Sirisena assumed office last week -- has decided to cut back uneconomical flights, including operations via Rajapakse International.

"This translates to an annual bottom line improvement of approximately $18 million," the airline said in a statement.

The airline is weighed down with debts of nearly $650 million.

Rajapakse opened his pet-project airport in March 2013, hoping it would become a new economic hub and act as a gateway to the island's southeast.

But the former government said in parliament that the airport earned 16,000 rupees ($125) in the month of May last year, recording a turnover less than that of a corner grocery store.

The only foreign airlines which operate services through the airport are UAE-based Fly Dubai and Rotana Jet Aviation.

Two budget carriers pulled out of the airport last year saying it was uneconomical due to insufficient traffic, but Sri Lankan Airlines maintained flights for political reasons, according to official sources.

Local media dismissed the airport as a vanity project for Rajapakse who had also named a sea port, a performing arts centre and a conventions centre after himself.

Built with funding from China's Export-Import Bank, the new $206 million facility could accommodate the Airbus A380, the biggest airliner in service. Attempts to attract an aircraft maintenance facility there had drawn a blank.

Last week's election was fought partly on allegations of corruption and waste by the Rajapakse administration, which is facing allegations of padding infrastructure projects to syphon off money.

Sri Lanka's President Mahinda Rajapakse (C) waves outside a

polling station in his native town of Tangalla, about 195 kms from

the capital Colombo on January 8, 2015 (Photo by Lakruwan

Wanniarachchi / AFP)

Related Articles:

Sri Lanka's Rajapakse concedes election defeat

Sri Lanka's Rajapaksa facing electoral rebellion

Sirisena, who had also been No. 2 figure in the ruling Sri Lankan

 Freedom Party (SLFP), quit Sri Lanka's cabinet on Friday, accusing

President Rajapaska of moving the country "towards a dictatorship."

"Recalibration of Knowledge" – Jan 14, 2012 (Kryon channelled by Lee Carroll) - (Subjects: Channelling, God-Creator, Benevolent Design, New Energy, Shift of Human Consciousness, (Old) Souls, Reincarnation, Gaia, Old Energies (Africa, Terrorists, Cuba, Iran, North Korea, Venezuela ... ), Weather, Rejuvenation, Akash, Nicolas Tesla / Einstein, Cold Fusion, Magnetics, Lemuria, Atomic Structure (Electrons, Particles, Polarity, Self Balancing, Magnetism), Entanglement, "Life is necessary for a Universe to exist and not the other way around", DNA, Humans (Baby getting ready, First Breath, Stem Cells, Embryonic Stem Cells, Rejuvenation), Global Unity, ... etc.) - (Text Version)

“…  I want you to watch some countries. I don't have a clock [this statement is Kryon telling us that there is no time frame on his side of the veil, only potentials]. I'll just tell you, it's imminent [in Spirit's timing, this could mean as soon as a decade]. I want you to watch some countries carefully for changes. You're going to be seeing changes that are obvious, and some that are not obvious [covert or assumptive]. But the obvious ones you will see sooner than not - Cuba, Korea [North], Iran, of course, and Venezuela. I want you to watch what happens when they start to realize that they don't have any more allies on Earth! Even their brothers who used to support them in their hatred of some are saying, "Well, perhaps not anymore. It doesn't seem to be supporting us anymore." Watch the synchronicities that are occurring. The leaders who have either died or are going to in the next year or so will take with them the old ways. Watch what happens to those who take their place, and remember these meetings where I described these potentials to you. …”

AirAsia, Indonesia and Effective Crisis Management

Jakarta Globe, Bloomberg, Dec 31, 2014

President Joko Widodo on board a Hercules plane taking part in the
search for AirAsia Flight QZ8501, on Tuesday.(Antara Photo/Andika Wahyu)

In his run for president this year, Joko Widodo pledged to bring greater openness and accountability to Indonesia. As his administration faces its first international crisis, the mysterious crash of an AirAsia jet, he’s proving to be a man of his word.

You can tell a lot about a nation from its response to great tragedy, whether it’s Japan’s 2011 Fukushima crisis, Malaysia’s lost Boeing 777 in March or South Korea’s deadly ferry accident in April. So far, Joko has performed admirably.

Since news broke on Sunday that an Airbus A320 flying from Surabaya, Indonesia, to Singapore vanished with 162 people on board, Joko has coordinated search-and-rescue efforts, demanded a review of air safety regulations and called on weather agencies to provide timelier information. His government is giving steady updates, and Joko has sought help from Singapore, Malaysia, South Korea, Australia and, remarkably, China and the US in finding Flight QZ8501.

In contrast, last spring, Malaysia was widely criticized for the secrecy and paranoia that surrounded its search for a Malaysia Airlines flight that disappeared with 239 people aboard. Welcoming US and Chinese military ships into Indonesia’s orbit speaks to Joko’s confidence as a leader.

Let’s hope this is a harbinger of future competence. Joko is the fifth president since dictator Suharto was ousted in 1998 but the first true political outsider to run Southeast Asia’s biggest economy. Because he’s not a member of a dynastic family or the military, he isn’t beholden to vested interests looking to siphon the benefits of Indonesia’s 5 percent growth. That gives him latitude to dismantle the kleptocracy that Suharto built during his 32-year reign and raise Indonesia’s competitiveness.

As governor of Jakarta, starting in 2012, Joko brought a surprising level of transparency. He moved budget procurement and tax collection processes online. He’s now working to make national government services electronic to reduce opportunities for graft and improve efficiency. Opening up the process of granting licenses for developing infrastructure, mines and plantations alone would do much to clean up the nation’s political and business climate.

Indonesia’s aviation industry also has long cried out for greater oversight. Its carriers, air traffic controllers and the skies around the archipelago of 250 million people are notorious for their regulatory laxity. As recently as 2009, state carrier Garuda was banned from European Union airspace. That laxity is a product of decades of cronyism and institutional neglect.

While Joko’s predecessor Susilo Bambang Yudhoyono made inroads against graft, Indonesia’s still ranks behind Djibouti and Argentina and a sober 22 rungs below India in Transparency International’s latest corruption perceptions index. The daylight Joko wants to shine on the government is needed to attract more foreign investment and ensure that scarce revenues are spent on education, health care and poverty programs.

The openness and assertiveness with which Joko has responded to Flight QZ8501 gives me reason to hope that Indonesia will be prepared for whatever comes its way.

William Pesek is a Bloomberg View columnist based in Tokyo and writes on economics, markets and politics throughout the Asia-Pacific region.

President Joko Widodo, center, talks to the head of Indonesia’s national search
 and rescue agency, Soelistyo, left, and Chief of the Sea Security Coordinating
 Agency, Vice Admiral Desi Albert Mamahit, right, shortly before a news conference
 about missing Indonesia AirAsia flight QZ 8501 in Jakarta, on Dec. 29, 2014.
 (EPA Photo/Bagus Indahono)

Related Articles:

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Tweets Expressing Grief and Prayers for Missing AirAsia Indonesia Flight

PM under fire as 118,000 flee worst Malaysia floods in decades

Korean Air heiress arrested for 'nut rage'

Yahoo - AFP, 30 Dec 2014

Korean Air heiress Cho Hyun-Ah (centre) grabs an arm of a prosecution official
as she leaves for the prosecutors office in Seoul, on December 30, 2014 (AFP)

Korean Air heiress Cho Hyun-Ah was arrested on Tuesday for delaying a flight with a tantrum over snacks in a "nut rage" incident that caused a national uproar, according to a media report.

Cho has been accused of forcing the chief purser off a December 5 New York-Seoul flight and of compelling the taxiing plane to return to the gate so he could disembark.

She had taken exception to being served macadamia nuts she had not asked for -- and in a bag, not a bowl.

Cable news network YTN showed Cho as she was taken by prosecutors to prison late Tuesday -- the 40-year-old kept her head low and said "I'm sorry" as she left the building, broadcast footage showed.

The prosecutors' office had applied for an arrest warrant last week -- this was finally granted by a court in Seoul late Tuesday, Yonhap news agency said.

Cho was charged with violation of the aviation safety law, coercion and interference in the execution of duty.

An unidentified KAL executive was also arrested Tuesday on charges of destroying evidence from the incident.

Cho -- one of three children of Korean Air boss Cho Yang-Ho, the patriarch of business conglomerate Hanjin Group -- has publicly apologised and resigned from all her posts in the organisation.

The transport ministry has vowed to sanction the airline with a flight ban, most likely on the New York-Seoul route, that could last for up to a month, or with fines of up to $2 million.

However the investigation into the incident has also been tainted with scandal.

A ministry investigator was arrested last week for leaking details of the investigation to KAL officials.

Separately, the transport ministry has vowed to punish eight of its officials after admitting their investigation into the incident was unfair.

Speaking at an official briefing Monday, Shin Un-Chul, a ministry auditor, said the investigation into the incident had been impaired due to the fact that a KAL staffer had been present, which may have intimidated witnesses.

"We have found our fairness was impaired by an imprudent investigation," Shin told reporters.

Four of the eight officials who questioned Cho will receive a warning, while the others will be referred to a disciplinary committee and could face dismissal.

Related Article:

South Korean heiress apologizes to flight attendants for 'nut rage'

Jakarta Governor in Mission to Rid City’s Procurement Process of Graft

Jakarta Globe, Lenny Tristia Tambun & Markus Junianto Sihaloho, February 19, 2014

The Jakarta administration so far this year has received a total of 656 buses.
(SP Photo)

Jakarta. Jakarta Governor Joko Widodo is using the investigation of fraud into the Rp 113 billion ($9.6 million) purchase of new buses as shock therapy and leverage to rid the city’s notoriously rigged procurement processes of corruption.

Joko and his deputy, Basuki Tjahaja Purnama, vowed to bring those officials involved in the markups in the purchase to justice, an unprecedented move that could set an example of how the country could get rid of corruption in procurement processes, where the state has allocated more than Rp 400 trillion this year alone, making it the biggest potential source of corruption.

Joko vowed on Wednesday to bring all corrupt officials to book, emphasizing the need for stricter monitoring, management control and field inspections as his administration starts to implement a number of high-value projects.

“We need is better management of control. The city’s inspectorate office may be able to handle the smaller ones, but some projects are very big and we don’t have the necessary monitoring measures. That is what we want to do with the project management office,” Joko said on Tuesday.

Among the bigger projects undertaken by the government this year are the mass rapid rransit project, the monorail project, the TransJakarta project and the construction of low-cost apartments, all of which involve trillions of rupiah from the city coffers.

“This is to assist, monitor, control and audit the bigger projects. But we’re still discussing it,” Joko said.

“The city administration lacks control management, but it is impossible for me to check [on the projects] directly. Even the inspectorate cannot do so. We are assisted by the BPK [Supreme Audit Agency] and the BKPP [Financial Development Comptroller]. The inspectorate currently monitors 57 budgets.”

Indications of fraud have emerged from an investigation by the Jakarta Provincial Inspectorate office into the purchase of new buses, after the units were discovered to be unfit for use shortly after arriving in the capital from China, where they were manufactured.

“I have received the report from the inspectorate about fraud involved in the procurement of the feeder buses and buses for the Integrated City Busway facility. Apparently the irregularity was found in the tender procedure,” Basuki said.

The inspectorate had initially found no issues in the administrative process of the procurement, but eventually discovered several irregularities in tender documents, including a significant increase in prices up to the process of determining the winning tender.

“In China [the buses] are supposed to be priced at Rp 1 billion, but instead it is sold here for Rp 3 billion. So if you look at the documents, of course it is China who benefits most, it is very clear,” Basuki said, adding that he would leave the matter to law enforcement to probe.

Further review

Basuki also called on the BPKP to subject the documents to further review by financial experts and those with knowledge of project implementation issues.

He also indicated that those involved in manipulating the documents tozz conceal the foul play, were Transportation Office officials responsible for the budget and members of the committee involved in the tender process.

“They’re all very smart. The tender committee is also full of problems,” he said.

Chairman of the Jakarta Inspectorate office Franky Mangatas Panjaitan said they would be summoning the goods receipt committee as well as the TransJakarta Management Unit to clarify its findings.

“They will be asked to provide information on the goods receipting procedure and documents pertaining to the inspection of goods that were received,” Franky said.

He called on the public to remain patient while waiting for results from the probe, emphasizing that it was necessary for the institution not rush to any conclusions when making its recommendations.

Franky confirmed that there had been indications of fraud in the tender process.

“However the city administration has not yet received all of the units so we can’t come up with a general conclusion just yet,” he said. “We will have to run tests [on the buses] and test their performance. Only then will we be able to make a finding.”

The city administration so far this year received a total of 656 buses, comprising 346 for the BKTB and 346 for TransJakarta. However, less than a month into their use, 10 BKTB buses and five TransJakarta buses were found to be unfit for use, with some of their components not working properly and being rusted.

Some people have also called on the city administration to involve the Corruption Eradication Commission (KPK) in its investigation.

“The TransJakarta case is best handled by the KPK. We are calling on Basuki to be proactive and report it to the KPK,” said Habiburokhman, central executive board chairman for the Great Indonesia Movement Party (Gerindra), of which Basuki is a member.

The KPK has expressed its willingness to support city officials.

“If they want to report it to the KPK then go ahead. However, as of today, we have yet to receive any reports,” KPK spokesman Johan Budi said on Monday, as quoted by Inilah.com.

The procurement of goods purchased by government institutions have become very prone to acts of corruption.

In the most recent case, the Jakarta High Court sentenced former traffic police chief Djoko Susilo to an 18-year prison term for his involvement in the graft-ridden procurement of driving simulators.

Meanwhile, in Banten, the KPK has also uncovered allegations of embezzlement in the procurement of medical equipment for state hospitals in South Tangerang.

The central government has allocated a total of Rp 201.88 trillion for the purchase of goods and another Rp 205.84 trillion for capital expenditure in its budget for 2014.

Additionally, the state has also allocated Rp 341 trillion to provinces and districts across the country.

A recent Indonesia Corruption Watch report showed that up to 98.12 percent of the 267 corruption cases reported in the second quarter of 2013 were in regional government institutions, most in North Sumatra and East Java.

Last year 35 regional chiefs were mired in graft scandals, prompting ICW to warn of a “corruption emergency” in the country.

India 'cancels helicopter deal with AgustaWestland'

Google – AFP, 1 January 2014

File picture shows a new AgustaWestland AW159 Wildcat helicopter at the

 Farnborough International Airshow in Hampshire, southern England, on 

July 11, 2012 (AFP/File, Adrian Dennis)

New Delhi — India has cancelled a 556-million-euro ($753 million) contract with Anglo-Italian firm AgustaWestland to buy luxury helicopters for VIPs following a corruption scandal, the Press Trust of India reported Wednesday.

The deal was scrapped after Defence Minister A. K. Antony held a meeting with Prime Minister Manmohan Singh, the national news agency said, quoting what it described as official defence ministry sources.

India had suspended the deal in 2013 after Italian investigators began looking into allegations that AgustaWestland paid bribes to win the contract.

The Italian boss of AgustaWestland's parent company Finmeccanica was arrested last February over the case -- touching off a firestorm in India, where the Congress-led government has been battling a string of graft scandals before elections this year.

India signed the deal in 2010 for 12 helicopters from AgustaWestland after the company beat competition from American and Russian rivals.

In November last year the helicopter maker had sought arbitration to try to salvage the contract.

Italian prosecutors suspect kickbacks worth around 10 percent of the deal -- $67.6 million (50 million euros) -- were paid to Indian officials to swing the deal in favour of AgustaWestland, according to Italian media reports.

India has already received three of the helicopters, intended to be used by such dignitaries as the prime minister and the president, but Antony halted deliveries of the remaining nine.

India's auditor general said in a report last year that the defence ministry "deviated from procurement procedure and tender on several instances in the deal" including altitude requirements.

Indian detectives raided the home of former air force chief S.P. Tyagi as part of the probe into the allegations of bribery. Tyagi has denied any wrongdoing.

Cash was allegedly handed to Tyagi's cousin, with more money funnelled via a web of middlemen and companies in London, Switzerland, Tunisia and Mauritius.

The purchase also came under scrutiny from Italian investigators probing allegations the Italian group had broken the law by bribing foreign officials.

The company denies any wrongdoing.

A spokesman for the company in India was not immediately available to comment on the PTI report.

The cancellation is expected to be a big blow to AgustaWestland, which has a factory in southwest England.

The decision will also be a severe blow to Finmeccanica, whose chief executive Giuseppe Orsi resigned from behind prison bars in February last year.

Orsi denies any wrongdoing and his lawyer has called the allegations against him "inconsistent" and his arrest "unjustified".

The latest move by the Indian defence ministry is seen as a government attempt to contain the fallout from the corruption scandal before elections due in the first half of this year.

The helicopter deal was cleared by Singh, whose Congress-led government has been buffeted by a series of corruption scandals that analysts say could affect the party's electoral chances in 2014 polls.

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