Navy admits mismanaging foundations

Navy admits mismanaging foundations

SURABAYA: Navy Chief of Staff Adm. Bernard Kent Sondakh said
on Tuesday that it had liquidated 16 of its 26 foundations
dealing with hotels, transportation, and services because of
inefficiency.

He said the foundations had been so badly run they could not
even finance their own operational costs. He said the foundations
had never yielded profits due to poor management.

Bernard said the dissolution of the foundations had only
netted a total of Rp 5 billion, making it impossible to give
holiday bonuses to thousands of soldiers.

"Frankly, I want all of them to be closed down because it is
not the duty of the Navy to run businesses. So it is normal if
the businesses do not prosper," he said.

Bernard said a team had been formed to study the feasibility
of the remaining foundations. The results of the study would
determine the foundations' viability, he said. --Antara