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