An investigative audit by the Supreme Audit Agency (BPK) has found indications of state losses amounting to Rp 4.08 trillion (US$306 million) in a state-owned port operator PT Pelindo II project.
The agency audited the project at the request of a House of Representatives inquiry committee into irregularities surrounding a contract extension for the management and operation of PT Jakarta International Container Terminal (JICT), a joint venture between PT Pelindo II and Hutchison Port Holding (HPH).
“Based on the investigation, the BPK concluded that there were numerous indications of violations and irregularities surrounding the contract extension, which was signed on Aug. 5, 2014,” BPK head Moeharmadi Soerja Djanegara said in Jakarta on Tuesday as reported by kompas.com.
Read also: KPK closes in on Pelindo II corruption probe
Moeharmadi has handed the investigative report to House Speaker Setyo Novanto and inquiry committee chairwoman Rieke Diah Pitaloka.
“It was found that the contract extension was not in the business plan and did not obtain approval during an RUPST [annual shareholders meeting]. Suddenly it was decided to extend the contract from 2015 to 2039,” she said, adding that the contract between Pelindo II and HPH should have expired in 2019.
“Had no contract extension been made until 2019, JICT would be 100 percent owned by Indonesia,” the Indonesian Democratic Party of Struggle politician added.
Vehicles travel down Jl. Pak Kasih at the Pelindo II-operated Dwikora river port on the Kapuas River in Pontianak, West Kalimantan. The port, located 27 kilometers from high seas, has a limited capacity, hampering the exportation of commodities such as crude palm oil.(The Jakarta Post/Severianus Endi)
Former Pelindo II president director Richard Joost Lino was named a graft suspect by the Corruption Eradication Commission (KPK) on Dec. 18, 2015 involving the procurement of quay container cranes in 2010. (ecn/bbs)