Uncovered: 16 most corrupt state firms

Uncovered: 16 most corrupt state firms

The Jakarta Post, Jakarta

State Minister of State Enterprises Sugiharto finally disclosed
on Thursday 16 state enterprises allegedly riddled with
corruption, following demands from lawmakers who wanted to make
the allegation widely known.

During a hearing with House of Representatives Commission VI
for trade, industry and state enterprises, Sugiharto said he had
submitted the report on the allegation to President Susilo
Bambang Yudhoyono recently.

The state minister said the graft included procurement
kickbacks, unfair and opaque bidding processes, manipulation of
financial reports and illegal fees.

The allegations are based on an internal investigation
conducted by the Office of the State Minister of State
Enterprises using the companies financial reports as well as
audit reports from the Supreme Audit Agency and the State
Development Comptroller.

The disclosure bolstered Susilo's campaign to combat
corruption. State enterprises have long served as cash cows for
unscrupulous officials as well as for organizations and political
parties.

By maximizing state enterprises' performance, the government
expects to reap more proceeds to help plug the widening state
budget deficit due to the fuel subsidy.

Commission VI member Nusron Wahid said the government should
identify what drove the losses and graft in the companies in
order to be able to take the necessary steps in the future to
address the problems.

"We should identify the root of the problem. If it's
mismanagement, the option is restructuring the management. If
it's not, another options could be privatizing the firms," he
said.

Alleged corrupt SOEs

Companies Business

1. Bank Rakyat Indonesia Banking

2. Bank Mandiri Banking

3. Bank Negara Indonesia Banking

4. Perusahaan Listrik Negara Power

5. Asuransi Jiwasraya Insurance

6. Perusahaan Gas Negara Energy

7. Indofarma Pharmaceutical

8. Rajawali Nusantara Indonesia Trading

9. Pupuk Kalimantan Timur Fertilizer

10. Angkasa Pura I Airport operator

11. Pelabuhan Indonesia II Seaport operator

12. Pelabuhan Indonesia III Seaport operator

13. ASDP Transportation

14. Djakarta Lloyd Shipping

15. Televisi Republik Indonesia Television station

16. Radio Republik Indonesia Radio station

Source: Office of the State Minister of State Enterprises