Over $272m of potential losses found in KAI

Tony Hotland, The Jakarta Post, Jakarta

Indications of corruption and mismanagement were found in the state train operator PT Kereta Api Indonesia (KAI) during its 1998-2002 operations, risking Rp 2.59 trillion (US$272.63 million) in state money, a House of Representatives committee says.

Revealing its findings on Thursday, the committee comprising members of the House Commission V on transportation, telecommunications and public works said indications of graft were found after a five-month review of KAI's audit results.

Member Taufik Kurniawan said the committee found likely graft, collusion and mismanagement were to blame for the losses.

Taufik said the losses came from irregularities in operational expenses amounting to Rp 764 billion; unpaid ticket revenues of Rp 313 billion; transportation costs of Rp 542 billion; and maintenance costs of Rp 43 billion.

Possible losses were also discovered in advertising revenues of Rp 471 billion and other items worth a total of Rp 415 billion, Taufik said.

"Their booking system is also messy and it was difficult to trace sources of funds and their use in an accountable manner."

Another suspect case discovered by the committee, Taufik said, was the purchase of 32 useless Holec trains, which could not be used on the country's rail system.

Taufik said initial evidence of more irregularities had been found in the committee's preliminary review of the company's 2004 audit results -- with a total of Rp 1.14 trillion in questionable funds.

He said the committee would soon summon the company's management to clarify the irregularities and was considering handing over their findings to the Corruption Eradication Commission (KPK).