JP/5/KAI

Wed, 02 Apr 2003, 00:00 WIB | Source: JP

JP/5/KAI

BPK finds Rp 20b inefficiency in railway firm

Yuli Tri Suwarni
The Jakarta Post
Bandung, West Java

The Supreme Audit Agency (BPK) has found corruption totaling Rp
20 billion (about US$2.2 million) during a special audit of PT
Kereta Api Indonesia's (PT KAI) controversial spare parts
purchasing in Bandung and Yogyakarta during 2001 and 2002.

BPK has called on State Minister of State Enterprises
Laksamana Sukardi to act.

PT KAI spokesman Patri Supriyoso confirmed it had received the
results of the audit but refused to say what action it had taken
against officials implicated in the corruption.

"We have set up a small team to follow up on the findings and
simultaneously to prove whether the report is wholly true or
not," Putri said Tuesday.

The audit said inefficiencies and irregularities occurred in
the procurement of spare parts by PT KAI branches in Bandung and
Yogyakarta in 2001 and 2002, causing Rp 20 billion in material
losses to the state.

Many observers believe problems run a lot deeper within PT
KAI. Company president Omar Berto announced recently that the
company made only Rp 48 million in profit in 2002 because of
soaring operational costs.

BPK revealed that PT KAI suffered a Rp 7.7 billion loss from a
spare parts supply contract with its partner company. The partner
company supplied idle components to PT KAI who failed to check on
their quantity or quality.

Last year, the company ordered 150 units of speedometers
through the partner company at a total cost of Rp 1.1 trillion,
but 110 units functioned poorly. The remainder could not be used
at all.

The parts were purchased at prices far higher than those in
the market.

PT KAI also paid a total of Rp 2.2 billion higher than the
market price for a number of parts for diesel-driven trains.

Putir said PT KAI Purchase Manager Edi Sasongko was removed
from his position last December, a month before the results were
sent to the government.

He claimed that many other executives in the company had also
been discharged or demoted but would not provide details.

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