Rp 2.7 trillion lost at state-owned firms
Rendi A. Witular, The Jakarta Post, Jakarta
Recently disclosed alleged irregularities at 16 state enterprises may have caused more than Rp 2.7 trillion (about US$287 million) in state losses, a report from the Office of the State Minister for State Enterprises says.
Leaked to a number of media outlets over the weekend, the report says of the total amount of allegedly abused funds, Rp 1.36 trillion came from three publicly listed firms: Bank Rakyat Indonesia (BRI), gas utility firm PT Perusahaan Gas Negara (PGN) and pharmaceutical firm PT Indofarma.
The report found potential losses of some Rp 815 billion at BRI, which just replaced its president director, Rudjito.
The alleged losses at BRI are connected to two cases. The first involves suspected irregularities in the channeling of loans worth over Rp 745 billion in 2001 to the Domba Mas Group, which is in the plantation business. The second involves alleged kickbacks of Rp 70 billion for the installation of information technology systems at the bank.
A source at the state minister's office said the alleged loan irregularities at BRI had been reported to the government's anticorruption team, while the alleged procurement kickbacks had been reported to the Corruption Eradication Commission (KPK).
"The Office of the State Minister for State Enterprises has not yet replaced the executives (at BRI) because we are still focusing on replacing the president directors at all state enterprises," the source said.
BRI's newly installed corporate secretary, Suprajarto, denied the accusations and pledged to clarify the matter soon.
The state minister's office also disclosed possible irregularities at PGN in its Rp 500 billion investment in mutual funds, and alleged procurement kickbacks worth Rp 45 billion at Indofarma. The office is still conducting internal investigations of the two firms based on reports from the State Development Comptroller and the Supreme Audit Agency.
According to sources, State Minister for State Enterprises Sugiharto has asked President Susilo Bambang Yudhoyono to issue a presidential regulation on the protection of witnesses to encourage people to report corruption at state enterprises and other institutions.
Sources at the State Secretariat said the regulation was likely to be issued shortly after the President arrived back from trips to the U.S. and Japan next month.
Many, if not most, state firms in the country are known to be poorly managed and to suffer from low rates of return on investments, due mostly to corruption and intervention by vested interests -- which often regard the companies as cash cows for their own personal use.
As of last year, there were a total of 158 state firms with combined assets of Rp 1,200 trillion.
The Attorney General's Office is currently investigating alleged lending irregularities worth some Rp 12 trillion at publicly listed Bank Mandiri, the nation's largest lender.
The KPK, meanwhile, is expected to start looking into alleged procurement kickbacks in the installation of information technology systems at publicly listed Bank Negara Indonesia (BNI).
The case dates back to 2002 when BNI was under different management and is said to involve some Rp 98 billion.