BPK audit reveals Rp 2.59t graft in state companies
BPK audit reveals Rp 2.59t graft in state companies
Urip Hudiono, The Jakarta Post, Jakarta
The Supreme Audit Agency (BPK) found 11 cases of irregularities
in the management of state enterprise funds during the first
semester of the year, with potential losses to the state
amounting to Rp 2.59 trillion (US$258 million) and $39.1 million.
The bulk of the irregularities, which showed strong
indications of corruption, were found at the country's largest
lender in terms of assets, Bank Mandiri, and totaled Rp 2.49
trillion, BPK chief Anwar Nasution stated in a report presented
on Tuesday to the House of Representatives.
"We have reported these audit results to the police and to the
Attorney General's Office for further investigation, as part of
our efforts to help the government eradicate corruption in the
country," Anwar told a House plenary session on the agency's
semi-annual audit report of state funds.
The audits were conducted between January and June 2005, on
the financial reports of state-owned and local government
enterprises.
Also included were BPK's audit results of the government's
2004 budgetary report, which the agency had said it had put a
disclaimer on, due to BPK's disagreement of the finance
ministry's bookkeeping and internal supervisory procedures for
the report.
Besides irregularities in Mandiri, Anwar said BPK had also
revealed some serious issues in a business agreement between PT
Pertamina Energy Services Pte. Ltd. (Petral) -- the Singapore-
based trading arm of state oil and gas firm PT Pertamina -- and
its Hong Kong-based subsidiary, Zambesi Investments Ltd., causing
the state to potentially lose $12.74 million.
"Another audit on Petral showed collusion with business
partners Aceasia Commercial Enterprises Ltd. and Credit Suisse
Singapore, which led to Petral losing $8.25 million as a result,"
Anwar said.
The agency had also found $23.64 million worth of allegedly
mismanaged funds at the Asahan Authority, which manages the
Asahan dam and surrounding industrial complex in North Sumatra.
State insurance company PT Jamsostek has also been fingered
for potentially causing state losses of up to Rp 103.6 billion.
The losses resulted from the firm's Rp 100 billion investment
in fraudulent bonds at Bank Global Internasional, which the
central bank closed late last year due to fraudulent banking
practices.
Anwar said BPK had also found irregularities in the use of
fertilizer subsidies by state-owned fertilizer companies -- PT
Pupuk Sriwijaya, PT Pupuk Kujang, PT Pupuk Iskandar Muda, PT
Petrokimia Gresik and PT Pupuk Kalimantan Timur -- which were
singled out for allegedly claiming too much of the subsidy funds,
with discrepancies amounting to some Rp 16.8 billion.