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.