Concern over Telkom scandal

Concern over Telkom scandal

The news about the forensic audit carried out by
Pricewaterhouse Cooper (PwC) on PT Telkom Tbk is very
disappointing. The audit revealed the mismanagement and fraud of
hundreds of millions of rupiah in the operational cooperation
(KSO) between Telkom and PT Ariawest International (AWI) in West
Java. The finding stated that the whereabouts of some RP 600
billion to Rp 700 billion remains uncertain.

Moreover, instead of immediately rearranging the internal
management and seeking out the Telkom personnel responsible, the
management of the state-owned company, which is listed at the
NYSE, is busy denying the validity of the audit.

Apart from the truth of the result of the forensic audit that
was based on 45 percent of the data accessed by PwC, the
Consortium for the Transparency of Public Information (KUTIP),
would like to make the following suggestions.

1. Telkom as a company listed at the Jakarta Stock Exchange
(BEJ) has to explain to the public whether the leak caused by its
own mishandling or fraud -- as found by the PwC -- really did
take place or not.

2. The stock market authorities, in this case the Capital
Market Supervisory Agency (Bapepam) and the BEJ should demand an
explanation from Telkom regarding this issue. If necessary, a
team needs to be sent to investigate the matter. All these
attempts are to protect the interests of public investors.

3. The government, in this case the minister in charge of
controlling state enterprises, should not just wait for Telkom's
report. It should actively examine the truth of the results of
the forensic audit by sending the government's audit team from
the Development and Financial Control Board (BPKP) or from the
Supreme Audit Agency. Who would be interested in investing here
if the law is not honored and fraud goes unchecked?

BUDI PURNOMO

KUTIP Coordinator

Jakarta