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.