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.