Pertamina has highest indications of KKN
Wednesday, June 28 2000 - 03:00 AM WIB
Results of the audit by the Government Finance Comptroller (BPKP) for the 1999/2000 budget year showed that the highest indications of corruption, collusion and nepotism practices, locally abbreviated as KKN, were found in state oil firm Pertamina.
According to the results, presented by BPKP chief Arie Suhendro before the House of Representatives' Commission IX on banking and finance, the next institutions that recorded the highest indications of KKN in the 1999/2000 budget year that ended on March 31, 2000, were the office of the state minister of investment and state enterprises, the State Logistics Agency (Bulog), the Family Planning Coordination Council (BKKBN) and Bank Indonesia, the central bank.
"Indications of KKN were mostly detected from procedural deviations in procurement of goods and services, excessive payment, fictitious projects, document forgery, mark up of project value, and the awarding of projects to related parties," Arie said.
BPKP found 212 indications of KKN in Pertamina worth Rp 1.05 trillion, 87 indications of KKN in the office of state minister of investment worth Rp 213 billion, four in BKKBN worth Rp 70 billion, and two in BI worth Rp 55.7 billion.
Arie said that the two indications of KKN in BI occurred before the implementation of the new law on Bank Indonesia that ensures the independence of the central bank.
When asked about the non-budgetary funds in Bulog, Arie initially said that the Rp 2.8 trillion fund in question was still there, and had not been used. But when he was pressed further by legislators, Arie acknowledged that most of the fund had been used and only Rp 377 billion out of those funds in use could be traced, while the other had been used without proper documentation.
Arie then asked his subordinate Nasib Patmomihardjo to explain details of the transactions using Bulog's funds. Nasib then explained that the Rp 377 billion funds had been used during the period of Jan. 1998 through Dec. 1999. The spending included a coordination cost with the Supreme Audit Agency (BPK) totaling Rp 80 million, coordination cost with the House of Representatives Rp 566 million, and coordination costs with BPKP Rp 416 million.
BPK chairman Satrio "Billy" Joedono acknowledged that he had been informed about Bulog's coordination costs with BPK. "But that money is not used by BPK members, but by Bulog personnel themselves, like accommodation costs for them," Billy said. (*)