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.