Corruption inflicts $380m in financial losses to govt

Corruption inflicts $380m in financial losses to govt

JAKARTA (JP): The government announced on Tuesday that rampant
corruption, collusion and nepotism during the 32 years former
president Soeharto held power inflicted financial losses of more
than Rp 2.85 trillion (US$380 million) to the country.

Coordinating Minister for Development Supervision and State
Administrative Reforms Hartarto was quoted by Antara as saying
the losses came from corruption in at least eight government
agencies.

They were the Ministries of Forestry, Home Affairs, Public
Works, Mines and Energy; the office of the State Minister of
State Enterprises and the office of the State Minister of
Agrarian Affairs; the Attorney General's Office and the
Development and Finance Comptroller Agency (BPKP).

The government also said that about Rp 35 billion could be
salvaged, along with the annulment of project investments
estimated to be worth over Rp 6 trillion.

Hartarto said at a press conference after meeting President
B.J. Habibie at the State Palace that cost cutting measures in
various departments had also saved the government another Rp 619
billion.

Also present were Attorney General Andi M. Ghalib, BPKP
chairman Sudarjono, Information Minister Muhammad Yunus, Mines
and Energy Minister Kuntoro Mangkusubroto, Forestry Minister
Muslimin Nasution, Public Works Minister Rachmadi Bambang
Sumadhijo, Communications Minister Giri Suseno, State Minister of
State Enterprises Tanri Abeng and State Minister of Agrarian
Affairs Hasan Basri Durin.

Hartarto said that Tuesday's announcement was part of the
drive against corruption as stipulated in a decree issued by the
Special Session of the People's Consultative Assembly last month.

Hartarto said the government would announce the latest results
of its campaign against corruption in March.

"We will continue to fight corruption, collusion and
nepotism," Hartarto was quoted as saying by the news agency.

The government pledged to combat corruption following the fall
of Soeharto in May. It has launched an investigation into the
wealth of Soeharto, who is widely accused of enriching his family
and friends during 32 years in power.

Tanri said there were 79 state enterprise projects which had
been annulled due to corruption.

"To date, the office of state enterprises has found 167
projects which are allegedly tainted by corruption," Tanri said.

Tanri also said that 30 projects are being renegotiated and 56
others are either to be annulled, taken over or audited by BPKP.

Tanri said these measures have saved the government at least
Rp 400 billion and $1 million, as well as increased the revenues
of a number of state enterprises.

Meanwhile, Kuntoro said at least 152 projects at the state oil
and gas company Pertamina had been reexamined, saving the
government up to $64.7 million.

Kuntoro added that seven other projects are currently being
reviewed.

"We are also still studying a number of presidential
instructions which indicate corruption, collusion and nepotism,"
Kuntoro said.

Public Works Minister Rachmadi said he canceled 24 toll road
contracts which were undergoing feasibility studies because they
did not comply with the new presidential decree on open and
competitive tenders.

He said the contracts were worth Rp 15.8 trillion.

The government has said it would review and severe many
business contracts signed by its agencies and enterprises with
Soeharto's children and cronies.

Many of these deals were obtained largely as a result of
corruption, collusion and nepotism, not through competitive
bidding.

Contracts held by Soeharto's eldest daughter, Siti Hardijanti
Rukmana, for the construction and operation of toll roads across
the country were among those reviewed.

The government also recently revoked the license for the
construction of the three tier subway system in Jakarta and the
construction of an integrated railway/bus terminal in Manggarai.
Both projects were proposed by Hardijanti. (byg)