KPK to probe procurement graft in BNI

KPK to probe procurement graft in BNI

Rendi A. Witular, The Jakarta Post, Jakarta

The Corruption Eradication Commission (KPK) has requested the
Supreme Audit Agency (BPK) to conduct an investigative audit
concerning alleged corruption in the procurement of goods at
state-owned Bank Negara Indonesia (BNI).

KPK chairman Taufikurrahman Ruki said the audit would be
focused primarily on the procurement and installation, since
2002, of information technology (IT) systems that reportedly cost
US$98 million.

"We have reason to believe that corruption took place in the
procurement and installation of IT systems in three state banks
but our focus now is on BNI," he said during a joint press
briefing with BPK officials, prosecutors and police on Thursday.

Taufikkurahman, who is a former police general, said the
commission had asked the BPK to conduct an investigative audit on
the three state banks to gain sufficient evidence for
prosecution.

"Based on preliminary evidence, we have found indications of
corruption. But we need more evidence to support our claims," he
said.

BPK chairman Anwar Nasution said the agency was now preparing
for its audit of the banks, the results of which, would be
submitted to the KPK.

In response to the allegation, BNI president Sigit Pramono
said the bank would closely cooperate with the agencies to
uncover alleged corruption.

Sigit, who became the bank's president in late 2003, said the
IT procurement and installation policy was made by the previous
management in 2002, with a decision to allocate some $98 million
for modernizing the bank's IT systems -- a project which is
scheduled to be completed in 2007.

"We will surely cooperate with the investigators in uncovering
the case. We have also formed an internal investigative team
about the matter. We will not cover it up," he said in a press
conference after the BNI's annual shareholders meeting.

According to Sigit, when he first entered the bank, the
previous management had spent some $60 million of the funds for
the IT system to improve the bank's 930 branches throughout the
country.

BNI's former president director Saefuddin Hasan, who initiated
and approved the IT system procurement and installation, argued
that the decision was made by a special committee for services
and facilities.

He, however, claimed he could not recall the amount of the
funds allocated for the system nor any irregularities during the
procurement or installation.

"I no longer remember the decision. You can ask Pak Sigit
about that. The decision was approved by a committee and was
under the responsibility of the previous IT director. I just
can't remember," he reiterated.

Saefuddin was dismissed by the government in late 2003
following the revelation of a massive lending scam at the bank,
which cost the state some Rp 1.7 trillion ($180 million).
However, he was never prosecuted for any crime.