Rukindo admits leakage

JAKARTA (JP): The president of state-owned dredging company PT Rukindo, Baharudin Wahab, said yesterday that his company has experienced some "financial leakage."

"Deviation and financial leakage did occur in our companies, but we shouldn't necessarily relate them to corruption," he said at a hearing with House Commission V for finance, trade, cooperatives and logistics.

He did not give any overall figures, saying only that in the second quarter of this year the company incurred Rp 7.8 billion (US$3.4 million) in "financial leakage" (unexpected expenses).

Baharudin admitted that his company has been having efficiency problems and has experienced setbacks due to delays in dredging projects in west and east Ancol, North Jakarta, and in the Krakatau port of Cilegon, West Java.

The inefficiencies were partly caused by his employees, many of whom, he said, lack professionalism.

Baharudin also reported other problems that plagued his company's performance during the second quarter, including equipment failures and problems with its dredging ships.

He said that his company expects to receive a loan of Rp 60 billion for equipment and ship repair. "We're currently negotiating with a number of financial institutions to get the loan," he said.

He projected that his company would gain a profit of about Rp 3.5 billion this year. "At the least we hope to avoid incurring more losses this year," he said. (13)