Indonesian Political, Business & Finance News

Audit report indicates massive corruption at KPU

| Source: JP

Audit report indicates massive corruption at KPU

Tony Hotland, The Jakarta Post/Jakarta

The report on an investigative audit conducted by the Supreme
Audit Agency (BPK) indicates deep-rooted corruption at the
General Elections Commission (KPU), with all activities related
to the procurement of materials for last year's general election
apparently tainted with irregularities.

The audit report, submitted by the agency to the House of
Representatives on Thursday, indicated malfeasance involving more
than Rp 90 billion (US$9.47 million) in taxpayers' money by KPU
officials.

The report, which has been seen by The Jakarta Post, reveals
collusion, data manipulation, document forgery and price markups
by the KPU in connection with the more than Rp 800.48 billion it
spent on ballot boxes, ballot papers, ink, and information and
technology infrastructure.

It is likely that this is just the tip of the iceberg as the
report only covers the funds given to the KPU for the legislative
election. The KPU was allotted a whooping Rp 4 trillion to hold
consecutive legislative and presidential elections, as well as a
runoff in the presidential election.

The BPK is conducting two more audits -- on financial aspects
of the legislative poll and financial aspects of the presidential
poll -- as well as another audit on 16 provincial KPUs and 48
regental KPUs, which controlled many more trillions of rupiah.

The BPK audit report should give a boost to the Corruption
Eradication Commission's (KPK) efforts to uncover corruption at
the KPU, seen as much needed concrete evidence of the seriousness
of the government's war on graft.

According to the report, the procurement of ballot boxes,
which was overseen by Mulyana W. Kusumah and Chusnul Mar'iyah,
resulted in a staggering Rp 66.06 billion loss to the taxpayer as
a result of such things as the marking up of the price of ballot
boxes, manipulated ballot box specifications and marked-up
distribution costs.

The BPK also suspects a conspiracy to ensure that particular
firms obtained tenders in return for kickbacks.

The BPK found indications that the prices of some 251.29
million ballot papers were inflated by between 10 percent and 15
percent.

The BPK also suspects data manipulation involving the
inflating of the number of ballots that were printed by 36.9
million more than required under the General Elections Law (No.
12/2003) and a KPU ruling dated Feb. 18, 2004.

The BPK believes that these two cases cost the taxpayer about
Rp 12.62 billion.

As regards the procurement of ink, which was overseen by
Rusadi Kantaprawira, the BPK found that there were indications of
malfeasance as the KPU used the average offered price as the
price for both imported and local ink.

The BPK findings also include the extending of an exemption
from import duty to two KPU suppliers, and invoice forgery to
allow the embezzling of import duties and taxes by another
supplier. The BPK says that graft involving the procurement of
ink cost the state Rp 4.39 billion.

On information and technology infrastructure, which was the
responsibility of Chusnul, the BPK alleges the inflating of costs
at the Data Recovery Center by Rp 154.09 million.

Regarding the procurement of ballot envelopes, which was
managed by Daan Dimara, there were indications of the direct
appointment of firms tasked with printing the envelopes. The KPU
team also allegedly increased its self-estimated price by
slapping multiple surcharges on a number of cost components,
causing the state to lose Rp 7.06 billion.

KPU chairman Nazarudin Syamsuddin, deputy chairman Ramlan
Surbakti and commission member Chusnul failed to answer or return
calls from the Post on Friday. They had all previously either
denied being involved in graft or refused to comment.

View JSON | Print