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)