Indonesian Political, Business & Finance News

Govt finds massive graft cases

| Source: JP

Govt finds massive graft cases

A'an Suryana, The Jakarta Post, Jakarta

The Development Finance Comptroller (BPKP) has found 1,435
financial irregularities worth more than Rp 1.008 trillion (about
US$120 million) in government operations in the first three
months of 2003 alone.

Rp 1.008 trillion is equivalent to five months salary for more
than 300,000 workers earning Jakarta's minimum wage of Rp 631,000
per month.

State Minister of Administrative Reforms Feisal Tamin said
Friday that the internal audit agency had discovered 61 financial
irregularities worth Rp 967 billion in the Oil and Gas
Implementing Body (BP Migas).

The body, which took over the traditional role of state-owned
oil and gas company Pertamina overseeing the upstream oil and gas
industry, was established last year.

Faisal, however, failed to spell out the type of
irregularities found at BP Migas, which is directly under the
control of the president.

BP Migas head Rachmat Sudibyo could not be reached for comment
on Friday.

The second highest number of discrepancies were found in
regional governments with 494 cases involving Rp 17.9 billion,
followed by the State Ministry for State Enterprises with 175
cases involving Rp 6.4 billion.

BPKP discovered 2,508 irregularities worth Rp 2.2 trillion in
the first semester of 2001.

Feisal said authorities had followed up 261 cases or 18.19
percent of the total, with potential losses of Rp 958 billion in
state funds.

Following up means that the agency (BPKP) hands over its
findings to either the institution in question for further action
or the Attorney General's Office for legal proceedings.

"The findings in the first three months of this year do not
automatically mean that there were abuses. Both institutions
concerned and the Attorney General's Office are now
investigating. Whether or not corruption is involved will be
determined when the investigations are completed," Feisal told
journalists and dozens of participants at a working meeting
between his agency and all related government organizations at
his office.

BPKP, which is in charge of auditing development funds
allocated in the state budget, investigated 31 government
offices, including ministries and state agencies. Most of the
organizations were represented at the meeting.

Faisal, who was accompanied by BPKP chairman Arie Soelendro,
said he also invited representatives from the Attorney General's
Office, but they did not attend for unknown reasons.

Faisal said that of the 1,435 irregularities, 24 cases
involving Rp 32.77 trillion had been handed over to the
prosecution office.

Faisal said that of the 24 cases, the Ministry of Cooperatives
and Small and Medium Enterprises topped the list with 11 cases
worth more than Rp 20 billion.

Other cases already submitted to the prosecution office
included, among others, the Ministry of State Enterprises with
three cases worth more than Rp 4.2 billion, the Ministry of
National Education with four cases involving Rp 2.8 billion, and
the ministry of manpower and transmigration with two cases worth
Rp 2.6 billion.

10 biggest irregularities

No. Government Offices Irregularity Value (Rp)

1. Oil and Gas Implementing 61 cases 967 billion

Body (BP Migas)

2. Regional Governments 494 cases 17.9 billion

3. Ministry of State

Enterprises 175 cases 6.4 billion

4. Pertamina 89 cases 4.6 billion

5. Family Planning

Coordinating Body 51 cases 3.6 billion

6. State Logistics Agency 83 cases 2.3 billion

7. The Ministry of Foreign

Affairs 13 cases 1.7 billion

8. The Ministry of Home

Affairs 134 cases 989 million

9. The Ministry of Maritime

Affairs and Fisheries 3 cases 639 million

10. The Ministry of Cooperatives

and Small and Medium

Enterprises 4 cases 586 million
===============================================================
Source: State Development Finance Comptroller (BPKP)

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