Corrupt practices rampant in state enterprises: Official

Corrupt practices rampant in state enterprises: Official

JAKARTA (JP): An official admitted on Thursday what many have
long suspected: the practice of corruption, collusion and
nepotism is rampant in state enterprises.

Secretary of the Directorate General of State-owned companies
of the Ministry of Finance Mantaris Siagian admitted that the
institutions were prone to corruption, collusion and nepotism.

"We need to create clean, effective and efficient state
enterprises and we need to do it soon," he said.

Other speakers in the event, organized by the Federation of
Trade Unions of State Enterprises, the Indonesian Corruption
Watch (ICW) and the Partnership for Governance Reform in
Indonesia, also revealed the urgency of the situation.

Chief auditor with the Supreme Audit Agency (BPK), Usman
Damanik, pointed out that corruption can take place in all
production processes, from the procurement of the products until
they reach the consumers.

"No good example from superiors, foreign intervention in the
enterprises, the lack of law enforcement and the workers'
religious faith, just to mention a few, contribute to corruption
in state enterprises," he said.

"The government has to appoint directors for state enterprises
based on the candidates' professionalism and not on certain
interests," Damanik added.

He explained that many audit reports which had shown
indications of corruption had been submitted to the Attorney
General's Office, especially on banking and mines government
deals, but no further action was taken.

ICW coordinator Teten Masduki alleged that there must be a
practice of corruption in many companies who complained of
losses.

"If there was no corruption, then how come state enterprises
like electricity company PT PLN and telephone company PT Telkom
suffer losses each year although they don't have competitors?" he
remarked.

To eradicate corruption in the enterprises, the workers
federation, represented by its chairman Bambang S. Syukur, signed
a memorandum of understanding with ICW to work hand-in-hand to
create a zero corruption zone in all state enterprises.

The agreement which is valid for one year until July 28, 2002
includes drawing up a concept on how to establish good corporate
governance in the enterprises. Its implementation will involve
the workers and the general public. (bby)