Pertamina needs to be audited before implementation of oil and gas law

Legislator Priyo Budi Santoso from the Golkar Party proposed that Pertamina be audited thoroughly by an independent auditor to cleanse the company from ill practices before it is floated in a free competition in the oil and gas industry with the planned passage of the oil and gas law, Koran Tempo daily reported on Monday (Oct. 8).

Priyo contended that the recent audits by the Development Finance Comptroller Agency (BPKP) and the Supreme Audit Agency (BPK) failed to reveal the rampant corruption, collusion and nepotism practices in Pertamina.

"Pertamina's festers must be cleaned before the oil and gas bill is signed into law and Pertamina is transformed into a normal limited liability company," he said.

He noted that such a comprehensive audit against Pertamina must be conducted by an independent auditor that has no connection with foreign oil and gas companies. Otherwise, important data in Pertamina could be leaked to its competitors.

Priyo also expressed his indignation over BPKP's recent report on its audit against Pertamina. Initially, BPKP reported that it found a total of Rp 3 trillion worth of various irregularities, but then it revised the figure down after BPKP officials met with Pertamina's executives.

BPKP then said the irregularities that worth further investigation were only Rp 428 billion. Other irregularities, it said, were mostly minor violations of procedures that could not be categorized as grafts.

Meanwhile, Indonesian Corruption Watch coordinator Teten Masduki slammed BPKP for narrowing down the level of possible graft cases in Pertamina. He contended any violations of procedures or standards could be categorized as grafts. (*)