BP Migas clarifies BPKP audit report

BP Migas clarifies BPKP audit report

Fitri Wulandari, The Jakarta Post, Jakarta

BP Migas (the oil and gas implementing body) clarified on
Monday earlier media reports suggesting massive irregularities
within the agency.

BP Migas deputy chairman for general affairs Bangun Usman
Harahap said that the Rp 967 billion (US$117.93 million)-worth of
irregularities revealed last week by the Development Finance
Comptroller (BPKP) were graft cases that had accumulated between
1995 to 2001, involving oil and gas contractors in the country.

He said that during the period, supervision of oil and gas
contractors was carried out by state-owned oil and gas firm
Pertamina, adding that BP Migas was set up in the middle of last
year, taking over Pertamina's role in supervising the country's
upstream oil and gas industry.

Based on the BPKP first-quarter audit report, BP Migas was
seen as the most corrupt government institution because the
combined 61 instances of irregularity within the agency were the
largest in terms of value.

"Thus it is incorrect to say that the irregularities occurred
within BP Migas," Bangun said.

BP Migas' claim was also supported by BPKP itself.

Ruchiyat, a director at BPKP, said in his letter that the
audit report on BP Migas was an accumulation of past
irregularities.

"During the period, supervision and control of oil and gas
producers were still regulated by Pertamina's management
production-sharing contracts," he said in a statement to BP
Migas, a copy of which was obtained by The Jakarta Post.