Another PLN executive arrested in Borang corruption case

Another executive of the state owned electricity company PLN has been arrested for his alleged involvement in corruption at the company's Borang power plant in Palembang, South Sumatra, Koran Tempo reported on Monday.

Beni Mamoto, a senior police officer in charge of the case, said in Jakarta last week that the executive with an initial "A", currently the director of PLN's power generation, had been declared one of the suspects in the corruption case at the Borang power plant.

He also said that Ali Herman, PLN's director for power generation and prime energy, who was arrested earlier, had been also declared as the suspect.

The arrests were made following the disclosure of an alleged manipulation on the procurement of one of power generation machines for the Borang steam power plant in 2004.

According to the finding made the state audit agency BPK, the price of the facility had been marked up causing losses of about US$13.164 million or about Rp 122 billion to the state.(*)