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)