Govt saves $1b from the budget

JAKARTA (JP) : More than US$1 billion in state funds were saved or withheld from being spent as a result of anti- corruption, collusion and nepotism measures at state companies over the past one year until June, the government announced on Tuesday.

State Minister of the Empowerment of State Enterprises Tanri Abeng told a news conference that the savings were generated by the cancellation and retendering or renegotiation of 173 procurement contracts of 17 state firms.

"We canceled projects that were implicated in KKN but we retendered or renegotiated contracts which were vital to the state," Tanri added.

Tanri refused to name officials involved in KKN practices at the state companies, saying "I don't have the data right now, but a few directors have been implicated in KKN."

He said his office was not empowered to undertake legal proceedings against officials or companies implicated in KKN.

"It's the jurisdiction of the Attorney General Office's".

Tanri's announcement covered the results of third stage anti- KKN drive in state-enterprises which is part of the nation-wide campaign against malfeasance launched immediately after the fall of former president Soeharto in May last year.

He said 79 contracts mostly for infrastructure projects had been annulled for irregularities, 25 projects were being renegotiated and 59 others were still under examination by Finance Comptroller Agency (BPKP).

State-owned toll road operator PT Jasa Marga lost 24 contracts, many of which involved Soeharto's daughter Siti Hardijanti Rukmana and state-owned port operator PT Pelindo II lost 18 contracts, Tanri said.

"We canceled eight contracts each at Garuda Airways and PT Pelindo III and six contracts at PT Pelindo IV," he said.

Tanri added that two contracts involving PT Kertas Kraft Aceh paper mill, which is owned partly by Mohammad Bob Hasan, a close business associate of Soeharto, were retendered and two others were being reevaluated.

He said among the contracts canceled in the first half of this year was the asphalt distribution deal awarded by PT Sarana Karya to PT Lima Jasa. Investigations found that the directors of both companies had family ties. (01)