PT BA reports tax scam worth Rp 37.5 billion

State owned coal producer PT Batubara Bukit Asam has suffered a financial loss amounting to about Rp 37.5 billion (US$1=Rp 10,000) due to a deviation of tax payment in the company, Sumatera Express reported on Thursday.

PT BA president Sunardi said in a hearing with the Commission D of the Legislative Council of South Sumatera province that the tax deviation which took place in 1999 was allegedly involved the head of the company?s financial division.

According to Sunardi, the finance official issued checks to a third party, instead of the tax office, to settle the tax payment.

The tax scam was unveiled after the company received information from the tax office that the checks used in the payment were fake, he said, adding that the financial executive had been put into jail for his wrong doing.

Sunardi said that PT BA, which operates massive coal deposits in Muara Enim, South Sumatra, had to spend another Rp 37.5 billion to settle the unpaid tax. ?From the Rp 37.5 billion deviated by the finance executive, the company has so far been able to recover only about Rp 12 billion,? he added.

PT BA is one of several state owned companies, which would be sold as part of the government?s privatization program. Sunardi said PT BA would sell up to 49 percent of its stake to strategic investors in the privatization program. (*)