Govt will use layers of audit to assess spending for Cepu oil block

State Minister for Supervision of State Enterprises Sugiharto has promised that the government will use layers audit to the spending made for the development of the disputed Cepu oil block in East Java, Kompas reported on Monday.

He said that the implementation of the audit system was needed to ensure there would be no mark-up practices and other forms of financial frauds in the development of the oil block.

Under the plan, the spending for the development of the oil block will not only be audited by the state audit agency BPK but also by the government's finance and development comptroller BPKP and a public accounting firm, he said.

Pertamina earlier said that it insisted to act as the operator of the oil block because the exploration costs proposed by ExxonMobil Indonesia were unusually very high. (*)