Pertamina promises to probe graft report<\/p>\n
JAKARTA (JP): State-owned oil and gas company Pertamina
\npromised on Thursday it would probe graft allegations amounting
\nto Rp 1.054 trillion (US$122 million) in a recent audit by the
\nDevelopment and Finance Comptroller (BPKP).<\/p>\n
Pertamina spokesman Ramli Djaafar said the company was always
\nopen to BPKP's investigations and would take legal actions
\nagainst any findings of corrupt activities.<\/p>\n
\"To prove the existence of corruption, further study of the
\nfindings is required,\" Ramli said in a press statement.<\/p>\n
BPKP's audit encompassed Pertamina, its subsidiaries and its
\nproduction sharing partners, covering the 1999\/2000 fiscal year
\nending March 31.<\/p>\n
Quoting the audit, Ramli said that BPKP found possible
\nirregularities in Pertamina activities amounting to Rp 208
\nbillion, of which some Rp 20 billion had been clarified.<\/p>\n
Findings of possible irregularities in Pertamina's production
\nsharing partners totaled Rp 820 billion, he said, with cases
\ninvolving Rp 515 billion clarified.<\/p>\n
He said that irregularities in Pertamina's subsidiaries
\ntotaled Rp 3 billion, of which cases worth Rp 1.5 million had
\nbeen clarified.<\/p>\n
He said that BPKP based its allegations of graft based on
\nirregularities in the procurement of goods and services,
\nunreasonable payments for work, fictional projects, faked
\ndocuments, mark up practices, and nepotism.<\/p>\n
Kompas reported Wednesday that BPKP's finding ranked Pertamina
\nas first in corruption among all state-owned companies and
\nagencies.<\/p>\n
BPKP indicated 212 corruption cases in Pertamina worth Rp 1.05
\ntrillion, the daily said.<\/p>\n
Ranking second is the office of the State Minister of
\nInvestment and State Enterprise Development with 87 cases worth
\nRp 630 billion, it said.<\/p>\n
While the national logistic agency (Bulog) ranked third with
\n17 cases involving Rp 213 billion.<\/p>\n
The findings of BPKP add to the list of alleged corruption
\ncases in Pertamina, following the Price WaterhouseCoopers audit
\non Pertamina's inefficiency last year, which later became the
\nimpetus for the company's restructuring program.<\/p>\n
The independent auditor revealed inefficiencies in Pertamina
\ntotaling US$6.1 billion during the period of April 1, 1996 to
\nMarch 31, 1998.<\/p>\n
Based on the audit, Ramli said Pertamina had forwarded 159
\ncontracts to the Attorney General's Office that were suspected of
\ncontaining elements of corruption. (bkm)<\/p>",
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