Fundasaun Mahein, June 26th 2014
Allegations of Corruption and Abuse of Power within the Security Sector
Fundasaun Mahein has published three reports over the execution of 2013 State General Budget for the Ministry of Defense and Security (MDS) including an Investigation of the purchasing process of weapon by PT. PINDAD (Persero) Indonesia and the lack of quality uniforms for the National Police of Timor-Leste (PNTL). Therefore FM recommends investigating for these processes because of the irregularities that have occurred on the State General Budget, purchasing process of weapon to PNTL as well as no quality of uniforms.
Therefore, this report asks the Commission of Anti Corruption (CAC) and the Public Ministry to hold an in-depth investigation for the execution of the state general budget and for the Ministry of Defense and Security, where 209 projects used the single sources even when those projects were not considered as urgent. Allocation of the 2013 state general budget for the Ministry of Defense and Security was totaling $68.199.000, where the budget of MDS used in the single source contracts having a value of $18.837.890.500 signifying that 44.7% of the total state general budget is based on irregular procurement processes.
FM identified and based on the law No.9/2011 on 17 August, article 3 No.1 part c), stated clearly that every contract of a value up to $500,000 should get a visa (vistu previa) from the Camara Beads of the Administrative Superior Court, fiscal and beads (Kamara Kontas Tribunal Superior Administrativu). However, the reality shows that some contracts that are more than this amount, MDS however divides the purchase into two contracts but from only one supplier. Ironically some contracts date of completion for projects have been done before the start date of projects.
The COC needs to hold an investigation for the purchasing process of weapons from PT.PINDAD (Persero) Indonesia to PNTL that is considered to have occurred irregularity in this process particularly the purchase of the weapon PM2-V1 to PNTL by PT.PINDAD (Persero). The procurement process of this contract; signed by the government of Timor-Leste through the secretary state of security (SSS) with the director of the company PT.PINDAD (Persero), “Supply Security Equipment (Weapon) for PNTL” with the contract number 12000513 for 24 days, started from February 23rd to April 6th 2012; with the type PM2-V1, 75 unit and number of funds that have been cited on the 2012 state general budget was U$112.500.000.
Regarding the report of the eventual commission detected that there was bad coordination within the institution, indication of power abuse, falsifying documents and no involvement of the National Directorate Procurement of SSS during the negotiation process between PT.PINDAD (Persero) and PNTL. The report of the eventual commission has recommended that it needs a criminal and disciplinary processes to SSS and PNTL General Command responsibilities.
Another case is about uniforms of PNTL that were distributed to members of PNTL at its general quarter and 13 districts command of which had no quality because of an insufficient budget. The Kalbes Unipessoal Lda Company distributed such uniforms with the total 2551 to logistic department based on the contract. A set of this uniforms composed of hat, shirt, rank, emblem, trousers, belt, shoes and socks with the total funds around U$120.000, yet it was sufficient only for thin uniforms. Uniforms for (PNTL) women are 478 and for men are 2551 units with the total budget around US$58.000.000 of the 2012 State General Budget.
This company had already failed in the first phase, regarding the thin uniforms, and were sent back to Indonesia. However on the second phase this company (Kalbes Unipesoal Lda) was approved by the PNTL general inspection and agreed this company to distribute those uniforms to 13 districts command, in fact that the uniforms still had no quality. Regarding bad qualities of the uniforms, the secretary state of security and the PNTL general command blamed each other over the responsibility regarding the process contract with the Kalbes Unipesoal Company on purchase the uniforms case. From the above mentioned cases FM questions strongly of these processes; why the secretary state of security and PNTL general command blame each other over responsibilities of purchasing uniform process? It means that there is no good communication between both sides.
1. Recommends to the State General Inspector, Commission of Anti Corruption (CAC) and Public Ministry to hold an investigation into the National Procurement of the Ministry of Defense and Security regarding the single source projects.
2. Recommends to CAC and Public Ministry to investigate the Secretary State of Security, PNTL General Command and some other member of PNTL who are involved in the purchasing process weapon by PT. PINDAD (Persero) Indonesia.
3. Recommends to CAC and Public Ministry to hold an investigation into the Secretary State of Security, PNTL General Command and Kalbes Unipesoal Lda Company over the purchasing uniforms process to PNTL that have no quality and the confusion over whose responsibility procurement of these uniforms was
To know more details on this issue please see:
FM Executive Director
Phone (+670) 7737-4222 or (+670) 77561184