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Jumat, 13 Mei 2011

MA-60 PLANES' AIRWORTHINESS, MARK-UP ISSUES

by Andi Abdussalam

          Jakarta, May 13 (ANTARA)  -  The government is checking the airworthiness of MA-60 airplanes in the country, while the Corruption Eradication Commission (KPK) is also studying a report on alleged price mark up  in the purchase of the Chinese-made aircraft.

         The examinations on the airplanes followed the crash recently in West Papua of  one of the 13 MA-60s purchased by state-owned Merpati Nusantara Airlines from China's Xian Aircraft International Company (XAC).

         Following the accident which killed 27 passengers and crew members,  certain quarters have asked that the airworthiness of the plane  be checked as there was suspicion the planes lacked quality and were purchased at a marked up price.

        President Susilo Bambang Yudhoyono during a cabinet meeting on Thursday called on all ministers concerned to explain to the public about the process of procurement of the Chinese made MA-60 plane.

         "What is important is clear explanation. Certainly the right parties to give the explanation are the Merpati leadership itself and the state enterprises minister at present and when the procurement was made," the president said.

         He said the public deserved clear explanation regarding the process of procurement of the plane that is now creating a polemic.

         Regarding the airworthiness of the plane, Transportation Minister Freddy Numberi said the government has decided to check it and ascertain the plane's airworthiness in order to ensure the safety of their use in the future.

        "We have issued letters ordering an inspection and safety audit on  the 12 MA-60 airplanes,"  Freddy Numberi told the press.  He said that the inspection on the airworthiness of the 12 MA-60s was done by a team formed by the ministry of transportation. It will work for one week to check  the 12 MA-60s airplanes.

         During the inspection, the operation of the 12 MA-60s would be managed in such away so that it would not disturb flight services. At present, the 12 planes are serving 66 routes most of which are Indonesian eastern regions.

         If in the examination process, the team found matters which could threaten or endanger flights, the plane concerned would be grounded.

         State Enterprises Minister Mustafa Abubakar agreed that the plane would not be grounded and asked Merpati to operate them because based on their technical specification they were declared airworthy.

        "As the regulator of Merpati and holder of its major shares, we do not ban MA-60 to fly. Please fly because we believe MA-60s meet the technical airworthiness requirement," Minister Mustafa Abubakar said.

         Yet, he acknowledged that at first, he was thinking to ground the planes. "At the beginning I thought the planes should be grounded on the reason of passenger safety. But after discussing it with the transportation minister I found that the planes are fit to fly," he said.

        Earlier President Director of PT Merpati Nusantara Airlines, Sardjono Jhony Tjitrokusumo said he was ready to resign if it is proven that the crash of  Merpati MA-60 in Kaimana Bay, Papua, on Saturday (May 7), was the result of technical reasons.

        "MA-60 was in a save condition. But if it has been proven that the crash was due to technical errors I am ready to resign," he said. He made the statement in response to inquiries from some circles that the MA-60 plane built by Xian China Air Craft lacked quality.

         Apart from the airworthiness of MA-60 planes, the public also alleged that the price of the plane had been marked up.

        The United Workers Union Federation of State Companies has reported that there was an alleged mark up in the purchase of the planes.  Spokesman of the United Workers Union Federation, Tri Sasono said his organization has reported the alleged mark up to the KPK.

        "There is an indication of mark up done to enrich either individuals or others by certain people,"  Tri Sasono said on Thursday.

         He said that the alleged mark up involved a government official and a lawmaker.  Sasono said that with the intervention of a broker (MS), Merpati purchased the plane with a price of US$14.6 million per unit, while actually the contract could be concluded at a price of US$174 million for 15 MA-60s.

         According to Merpati President Director Sardjono Jhony Tjitrokusumo,  Merpati in 2006 made a deal with  Xian Aircraft for the procurement of 15 MA-60 planes, in which the Indonesian government asked for a loan of 1.8 billion reminbi (yuans), the equivalent of  Rp2.1 trillion which was handed to Merpati as payment for the aircraft.

         In 2007, Merpati received only 2 units of MA-60 planes under a lease. Then in December 2010 another 11 units had been approved in the 2010 State Budget.

         The remaining 2 units were scheduled to come to Indonesia on May 19 and 20, 2011.

         But Mustafa Abubakar said that  in the contract signed  by XAC and Merpati the price per unit of the plane was US$11.206 plus optional equipment worth US$800,000 so that the price was US$12.2006 million per unit.

         Now, the report on alleged mark up in the price of the planes is now being studied by the anti-graft commission.

         Spokesman of the  Corruption Eradication Commission (KPK)  spokesman Johan Budi said the anti-graft body had already received a report about the purchase of the planes and "we are now still studying it." ***5***
(T.A014/A/HAJM/23:05/H-YH)   (T.A014/A/A014/A/H-YH) 13-05-2011 23:09:

Selasa, 10 Mei 2011

MA-60 PLANE CRASH FUELS OTHER STORIES

By Andi Abdussalam

          Jakarta, May 19 (ANTARA) - The crash last Saturday of a China-made MA-60 airplane belonging to state-owned Marpati Nusantara Airlines in Kaimana Bay, West Papua, that killed 27 people attracted the sympathetic attention of ASEAN leaders.

         The heads of state/government of the Association of South East Asian Nations who were holding a summit in Jakarta, before having a banquet hosted by President Susilo Yudhoyono, observed a moment of silence for the victims.

         Without belittling the extent of the accident itself, people find that the crash has raised another issue, when an online-media carried a story alleging that the plane had been purchased, reportedly marked up, through the intervention of a special presidential spokesman, known by his initials as "JW".

         Enriching the air accident's side story, as calls surface for investigation of the deals, China reportedly has threatened to cancel its commitment to finance Indonesia's 10,000 megawatt power crash program should Merpati be forced to cancel its purchase contract with China's Xian Aircraft industry.

         China's fear of contract cancellation is just logical if insistence at home forced Merpati to do so for both security and economic reasons. After all, MA-60 planes are not covered with international reputed airworthiness certification.

         In addition, the one which crashed in Papua was only recently purchased (last December), and the accident in Kaimana was the second to take place in Indonesia and the fifth one if similar accidents in other countries are taken into account.

         Based on records, the ill-fated plane was supplied by China's Xian Aircraft on December 3, 2010.  Merpati is scheduled to receive two more MA-60s on May 19 and 20, 2011.

         "We will accept the planes. There will be no cancellation. But in the future it will be adjusted to the company's business plan," the president director of Merpati Nusantara Airlines (MNA), Sardjono Jhony Tjitrokusumo, said.

          A lawmaker on trade affair however insisted that the purchase of the plane should be investigated.

         "The purchase of MA-60 which is carried out under a compromised mechanism should be investigated. China has threatened to cancel its financing  for Indonesian 10,000 MW crash power plants programs if Merpati cancels its contract," Ecky Awal Muharram of the House Commission VI on trade and state firms, said here Tuesday.

         The lawmaker even argued that parties involved in the controversial purchase of MA-60 must be investigated. Merpati is a state-owned company whose funding came from the people's money. The purchase mechanism and system of the aircraft needed to be reviewed because it had the potential to disadvantage the state money and harm the safety of the people.

         Moreover, the question over its purchase is arising while this type of aircraft has no certification from the Europe Aviation Safety Agency (EASA) and the Federal Aviation Administration (FAA) in the United States.  It only has certification from the Chinese aviation authority.

         "We do not need FAA certificates because MA-60s are not used in the United States. FAA certificate is a standard requirement in the USA but it is not needed in Indonesia," Sardjono Jhony said.

         MA-60 plane was purchased under a Sub Loan Agreement (SLA) funding system where the loan was given to the government but would be repaid by Merpati.

         The agreement was signed by the government with the Chinese Exim Bank repayable in 15 years by Merpati.  "This means that the government is the underwriter of the loan," Ecky said.

         He questioned the government's attitude towards the risk trend in MA-60 accidents which were categorically high in Indonesia and in other countries.  That's why the purchase mechanism and system of the aircraft needed to be reviewed because it had the potential to disadvantage the state money and harm the safety of the people.

         Yet,  Merpati President Sardjono Jhony Tjitrokusumo said the company's MA-60 plane that crashed in Kaiman on May 7 had been airworthy. "I clarified that the plane was airworthy when it departed from Sorong," Jhony said.

         He said the plane was in good condition and its crew members were fit to fly. "So, it is not the plane that is problematic. So far the plane has had no problem because the aircraft maintenance logbook was clear," he said.

         In this case, Chief Economic Minister Hatta Rajasa called on the people not speculate.

         "Don't make different speculations but look at its main problem," the coordinating minister for economic affairs. He said that the main problem was to investigate the real cause of the crash. "The problem is that the plane had crashed. And we have to investigate its causes. That's why we have to wait for the investigation results of the National Committee of Transportation Safety (KNKT)," he said.

         An online media is reported to have a story about allegation of a special presidential staff who had been involved in the purchase of MA-60 plane, reportedly marked up. However this allegation was denied by the State Palace.

         Special Presidential staff for information Heru Lelono said the report was not true. There was no presidential staff involved it. "There is no policy in the Palace giving a presidential staff an authority to take a decision on that matter (purchase of plane)," Heru said.

         He said that since his appointment as a special presidential staff in 2004, he had never known a presidential staff by his initials "JW".  "It would be better for those who first disclosed this matter   to explain who 'JW" is," he said referring to the story of the online media.

        Yet, if the report is true, the president will certainly take a firm action against him, he said.

        "I hope that all sides would think and react professionally and rationally in commenting on the Merpati plane crash accident," he said.

         What is important now is that the accident should be investigated by experts so that its causes could be revealed to prevent the repeat of such an accident, the presidential staff said.***3***

(T.A014/A/HAJM/17:52/A014) 10-05-2011 18:05:1