House queries ministry over $10.48m in losses
House queries ministry over $10.48m in losses
JAKARTA (JP): The House of Representatives asked Minister of
Public Works Radinal Moochtar yesterday to explain the financial
losses discovered in eight of his ministry's projects which have
amounted to more than Rp 24 billion (US$10.48 million).
Members of the House's budgetary commission said in a hearing
with the minister that the Supreme Auditing Agency, during its
1994/1995 fiscal year investigations, found 39 irregularities
involving Rp 24.92 billion in eight projects.
The commission submitted the question in writing to Radinal,
who replied yesterday.
The legislators said the 39 irregularities included excessive
payments for projects, excessive contract prices, inadequate
asphalt-layering for road construction, overlapping procedures,
double payments, failure to conduct bids for projects and the
abandoning of finished projects.
House members said the auditing agency also discovered that an
irrigation project in Baro Raya of Sigli in the Aceh province was
delayed because the private contractor was unable to finish the
job and government officials were slow to end the contract with
the private company.
As a result, the costs for the project soared and funds were
wasted.
The auditing agency also found that an irrigation project in
West Nusa Tenggara wasted Rp 105.6 million in funds.
Other cases uncovered included a Rp 369 million waste of funds
in the construction of the Cihaur and Citanduy irrigation systems
in West Java. The waste was caused by double calculation for
certain items of the projects.
The auditing agency also uncovered that an irrigation
rehabilitation project in Way Jepara, Lampung, worth Rp 1.2
billion, instead of being tendered, was rewarded to a certain
contractor.
Legislators pointed out that the appointment of contractors
for government projects was a violation of Presidential Decree
No. 16/1994 on goods and services provisions.
Radinal responded yesterday by saying that the findings and
suggestions from the auditing agency have been followed up by his
office. (pwn)