Pertamina scams could cause Rp 191 billion loss

JAKARTA (JP): Evidence of corruption uncovered by the Development Finance Comptroller (BPKP) at state oil and gas company Pertamina during the January-November period could inflict an Rp 191 billion (US$24.5 million) loss on the state, Minister of Mines and Energy Kuntoro Mangkusubroto said here on Friday.

Kuntoro said that he had ordered the ministry's Inspector- General Muzani Syukur to investigate the matter further.

"We shall take punitive measures against those who are found to be guilty. They might be either reprimanded or fired," Kuntoro said in a weekly press conference.

Kuntoro said the evidence related to new cases of corruption, not contracts and projects linked to former president Soeharto and his family and cronies that were recently purged from the company's books.

Pertamina announced recently that it had identified 159 companies linked to Soeharto and the friends and families of senior government officials which received contracts from Pertamina through collusion and nepotism.

Pertamina has annulled, renegotiated and retendered most of these contracts, bringing the company estimated savings of Rp 313.3 billion (US64.7 million) per year.

BPKP also found evidence of corruption at the state electricity company PLN and the state coal mining company PT Bukit Asam over the same period. It said that corruption at these two companies had resulted in losses of Rp 29.7 billion and Rp 28.4 billion respectively.

Corrupt activities were also uncovered at publicly listed state mining company PT Aneka Tambang and state gas distribution company PGN, neither of which were previously renowned for graft and embezzlement.

According to BPKP, corruption at Aneka Tambang and PGN had cost Rp 53 million and Rp 224 million respectively in the first 11 months of this year.

BPKP also said that mines and energy ministry officials across the country had embezzled Rp 88.1 million out of the state budget over the same period.

Officials in the ministry's directorates general of mining, and geology and mineral resources allegedly embezzled Rp 9.7 million and Rp 3 million respectively in the first 11 months of the year, while officials in the ministry's provincial offices stole Rp 75.3 million out of state budget funds under their control.

Priyo Budi Santoso of the ruling Golkar faction in the House of Representatives said he was surprised at the comptrollers findings.

"Many people, including myself, felt genuinely relieved by Pertamina's efforts to root out corruption, collusion and nepotism," Priyo said.

"But, the BPKP findings are really disappointing. I deplore the fact that many people in the company are still knee-deep in corruption," Priyo told The Jakarta Post.

Priyo said the findings would encourage the House to strengthen its control over the operations of Pertamina and its contractors to prevent corruption seeping even deeper into the workings of the country's oil and gas sector. (jsk)