Pertamina acknowledges rampant KKN in the company

State oil and gas firm Pertamina said on Wednesday that the company had followed up the reports from the Government Development Comptroller (BPKP) about indications of corruption, collusion and nepotism practices in the company that possibly inflicted Rp 1.05 trillion in losses.

Pertamina's spokesman Ramli Djaafar said more than half of that the indications of corruption, collusion and nepotism, locally known as KKN, had been followed up and settled by the company, involving a total fund of Rp 518 trillion.

Ramli said that out of the RP 1.05 trillion, most of the leakage occurred in Pertamina's production sharing contractors, with KKN value of Rp 824 billion, of which Rp 501 had been settled, Rp 14 billion was still in the settlement process, and the remaining Rp 313 billion of KKN cases had not been touched yet.

The largest single leakage found in Pertamina's own operation that totaled Rp 208 billion, of which Rp 14 billion had been followed up and settled, Rp 6 billion in the settlement process, while the remaining Rp 188 billion was still untouched.

The smallest leakage was recorded in Pertamina's subsidiary worth Rp 3 billion, most of which had not been touched.

Ramli explained that most of the leakage of fund happened through procedural deviations in the procurement of goods and services, excessive payment, fictitious projects, document forgery, mark up and projects awarded to parties with conflicts of interests.

"So, those findings of KKN are old findings, and Pertamina has been following up those findings to recoup the funds," Ramli said. (*)