Over $272m of potential losses found in KAI

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).