Govt saves $1b from the budget
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)