Pertamina told to take action against corruption<\/p>\n
JAKARTA (JP): State oil and gas company Pertamina should take
\nfirm action against 159 of its contractors and suppliers
\nallegedly involved in corruption, collusion and nepotism,
\nthe secretary-general of the Ministry of Mines and Energy said on
\nFriday.<\/p>\n
\"The public has been waiting for concrete progress in the
\nlegal resolution of these issues,\" Djoko Darmono told Antara.<\/p>\n
In a related development, spokesman for Pertamina's Foreign
\nContractors Management Body (BPPKA) Sidick Nitikusuma said that
\nthe review of contracts allegedly procured through graft -- known
\nlocally by the acronym KKN -- was nearly completed.<\/p>\n
He said BPPKA was preparing measures to follow up on
\nconclusions of the review.<\/p>\n
Measures include the revision of contracts and dismissal of
\nPertamina employees found involved in KKN practices.<\/p>\n
Djoko said the public wanted the legal measures against those
\nallegedly involved in KKN to be legally processed in a
\ntransparent way.<\/p>\n
He wondered whether rumors that Pertamina extended working
\ncontracts with 83 of the 159 contractors implicated in graft were
\ntrue.<\/p>\n
\"However, if the companies are proven free of KKN, there is no
\nreason at all for not extending their contracts,\" he said.<\/p>\n
Commenting on the government's plan to announce results of the
\nPriceWaterhouseCoopers (PwC) audit of Pertamina early next week,
\nDjoko said \"the audit report should clearly define whatever
\ninefficiency was discovered by the auditors\".<\/p>\n
A summary of the audit report leaked in early July estimated
\nthat Pertamina lost about US$6.1 billion from inefficiency and
\ncorruption in 1997 and 1998. However, the auditor later revised
\ndownward the estimated losses to $4 billion.<\/p>\n
Djoko said PwC should explain why it decided to lower the
\nestimated losses and what kinds of inefficiency and corruption
\ninflicted such major losses on Pertamina.<\/p>\n
\"Such explanations are necessary to enable the public to get a
\nbetter understanding of the problem and the reason why the
\ngovernment had to assign an independent auditor to audit
\nPertamina,\" he added.<\/p>\n
Minister of Development Supervision and State Administrative
\nReform Hartarto was quoted by Bisnis Indonesia daily on Thursday
\nas saying the auditor made mistakes in its audit and corrections
\nwere made after further discussion.<\/p>\n
Hartarto denied the corrections were made under government
\npressures but said PwC itself discovered errors in its audit.
\n(06)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-told-to-take-action-against-corruption-1447893297",
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"sponsor": "Okusi Associates",
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