PTP Agrintara refuses govt audit
PTP Agrintara refuses govt audit
JAKARTA (JP): The Government Audit Agency (BPKP) has notified
Coordinating Minister for Economics and Finance Saleh Afiff and
Finance Minister Mar'ie Muhammad that state-owned PTP Agrintara
refuses to have its financial reports checked by government
auditors.
"Our request to audit its financial reports has been
repeatedly turned down by PTP Agrintara's board of directors
since 1994, for unclear reasons," BPKP's chief, Soedarjono,
stated in a letter to the ministers.
PTP Agrintara was set up in December 1992 by the 26 state
plantations companies (before they were merged into 14
corporations in March) as a holding company for developing
downstream industries.
In February 1993, Minister Mar'ie granted PTP Agrintara quasi-
private company status to provide it with management autonomy and
operational flexibility. The status freed it from the arduous
procurement procedures imposed on state companies.
The ruling has led to a difference in opinion as to which
audit agency is authorized to check the company.
Soedarjono argued that allegations of cronyism in awarding
construction contracts for PTP Agrintara's rubber goods plant and
palm oil refining, fractionation and olefin plant made a
government audit imperative. He said questionable project budget
escalations made it even more so.
Soedarjono's letter, quoted by Antara, said several parties
had complained to BPKP about alleged malfeasance and questionable
deals within PTP Agrintara.
Several newspapers, including The Jakarta Post, reported last
month that PTP Agrintara may have lost billions of rupiah due to
delays in the completion of its rubber goods and palm-oil
refining plants. The two projects were both far over budget.
The two projects, costing a total of Rp 90 billion (US$38.6
million), were awarded to two separate contractors, PT Mestika
Karunia and PT Kalpataru Semesta. Both are controlled by the same
shareholders, including Burhanuddin, a close associate of
Agriculture Minister Sjarifudin Baharsjah.
The rubber goods plant in Purwakarta, West Java, was
inaugurated early last month, about five months behind schedule
and Rp 7.28 billion over budget. The palm-oil refining plant on
Batam island overshot its budget by Rp 2.2 billion.
Even though the palm-oil plant was almost seven months behind
schedule, contractor PT Kalpataru was awarded last December
another contract valued at Rp 45 billion. It will build a second
integrated palm oil unit on a repeat order basis.
Internal PTP Agrintara memos show it is finalizing legal
procedures to establish two joint-venture trading companies in
Jakarta and Singapore with PT Kalpataru and Focor Trading Ltd., a
unit of the Arthagraha Group.
Both PTP Agrintara's president, Soeharno, and Minister of
Agriculture Baharsjah admitted to budget problems, but argued
they were made necessary by changes in plant design. The said the
delays were due to inadequate financing preparations by
Agrintara. (vin)