BPK to audit 'TVRI' over past mismanagement

A'an Suryana, The Jakarta Post, Jakarta

The Office of the State Minister of State Enterprises is to launch an investigative audit on state-owned television broadcasting company TVRI over possible mismanagement in the past, a senior official said.

Roes Ariawijaya, a deputy at the ministry, said on Thursday that the audit would be carried out by the Supreme Audit Agency (BPK).

He said that the audit would, among others, help trace who was responsible for the Rp 300 billion (US$33.71 million) debt incurred by TVRI in the past, when it had actually received government funding for its operation.

Roes said that if any irregularities were uncovered, the top management at the time could be held responsible.

The government changed the status of TVRI into a profit- oriented company last year in a bid to help the ailing firm face tougher competition in the domestic broadcasting industry.

As part of its new status, the government recently made major changes in the company's management. The new board of directors will be formally installed on Monday.

The Office of the State Ministry of State Enterprises has picked Hari Sulistyono as TVRI's new president, replacing Sumita Tobing.

However, it is suspected that the management shake-up at TVRI was a move made by the Indonesian Democratic Party of Struggle (PDI Perjuangan), the ruling political party, to take advantage of TVRI's broadcasting network throughout the country during the campaign period leading up to the 2004 general elections. Hari is reportedly a PDI Perjuangan party member.

TVRI has been on the brink of bankruptcy after having failed to compete with other private television stations in the country during the past few years.

The television broadcasting company now relies solely on government subsidies, with a Rp 157 billion allocation in the annual state budget. Sumita, however, claimed that the actual figure amounted to Rp 1.2 trillion.