BPK to audit 'TVRI' over past mismanagement

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.