KPK warry of graft in SOEs

The Jakarta Post , Jakarta | Tue, 10/07/2008 10:01 AM | National

With a host of legislators and political figures successfully imprisoned, the Corruption Eradication Committee (KPK) is now turning its attention to state enterprises.

KPK chairman Antasari Azhar said Monday a team led by commission deputy Chandra Hamzah was investigating alleged corruption within a state-owned enterprise, Antara reported.

Antasari refused to reveal which company had been targeted, but said the anti-graft body would announce the name later this week, possibly Thursday.

"This week Pak Chandra will take action," Antasari told the press on the sidelines of an Idul Fitri get-together at his office.

The KPK began monitoring several state enterprises in May in an attempt to track down seized state assets.

During investigations into several state enterprises that began in May, a KPK team discovered that some state assets belonging to SOEs had been channeled to retired company executives, societies and other state enterprises.

The investigated state companies included the State Logistics Agency (Bulog), electricity company PLN, plantation firm PTPN III, postal company PT Pos Indonesia and telecommunications company PT Telkom.

In July, the KPK questioned top executives of state oil and gas firm Pertamina and Upstream Oil and Gas Regulator BP Migas in connection with the alleged embezzlement of funds from the nation's oil and gas industry, which reportedly cost the state Rp 200 trillion (US$22 billion) in losses.

KPK deputy chairman for graft prevention Haryono Umar said the since disbanded team of investigators had intensified scrutiny of documents related to the alleged embezzlement.

State enterprises have been accused of serving as cash cows for elite political groups, charges fueled by the fact that many top SOE executives are affiliated with political parties.

To combat corruption within state companies, former state enterprise minister Sugiharto signed in September 2006 a memorandum of understanding with the KPK that requires SOE executives to report their wealth and any gratuities they receive every year. The agreement also requires state companies to uphold transparency.

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