Pertamina to audit books under Baihaki
Johannes Simbolon, The Jakarta Post , Jakarta
State oil and gas company Pertamina is preparing to conduct a forensic and investigative audit on past financial statements amid suspicions that the last management led by Baihaki Hakim had mishandled the company's finances.
Pertamina chief financial officer Alfred Rohimone told The Jakarta Post on Tuesday that the audit was urged by the House of Representatives Commission VIII overseeing mining and energy affairs.
"We are selecting an independent auditor to carry out the forensic and investigative audit," Alfred said, and that the audit was expected to be finished by Aug. 30.
Commission VIII member Priyo Budi Santoso confirmed that it had made the request in view of the recent change in Pertamina's status into a limited liability company and because of the financial difficulties the company faced.
The audit is to define clearly those assets belonging to Pertamina and the government so they will not "easily change hands", Priyo said.
In addition, the audit was expected to uncover Pertamina's actual financial condition during Baihaki's leadership, as it is suspected that the various problems it is now facing -- including cash flow problems and the woes of its insurance arm Tugu Pratama -- had ensued from mismanagement by the previous management, he explained.
Priyo said the Commission made the request after Pertamina unveiled its cash flow problem and before the media storm over the firm's plan to sell its two giant tankers.
The Commission was particularly shocked at being informed that Pertamina, under the previous management, owed about Rp 17 trillion to the government, he said.
"We are really disappointed, as Baihaki had always said Pertamina was making a profit. He never said a word about the debt," Priyo said.
Alfred recalled the current management -- which took over on Sept. 17 -- was surprised when it read the company's books and seeing the extent of its financial problem. He refused to provide further details.
Despite the suspicions, Baihaki is still regarded as "clean", and was recently nominated by the House for the Supreme Audit Agency chairmanship.
Baihaki, a former president of U.S.-based ChevronTexaco's subsidiary PT Caltex Pacific Indonesia, was appointed by former president Abdurrahman Wahid in early 2000 to wipe Pertamina clean of corruption.
When he was replaced in September 2003, views on his tenure were split, with some believing he had performed well in carrying out the anticorruption drive and others voicing concerns.
Baihaki had ordered the construction of the two Very Large Crude Carriers that are being sold by the current management. The sales has become a controversial issue and has drawn protests from many who believe that corruption is behind it.
Pertamina has maintained that the vessels are being sold to ease its cash flow problems.