Uncovered: 16 most corrupt state firms

The Jakarta Post, Jakarta

State Minister of State Enterprises Sugiharto finally disclosed on Thursday 16 state enterprises allegedly riddled with corruption, following demands from lawmakers who wanted to make the allegation widely known.

During a hearing with House of Representatives Commission VI for trade, industry and state enterprises, Sugiharto said he had submitted the report on the allegation to President Susilo Bambang Yudhoyono recently.

The state minister said the graft included procurement kickbacks, unfair and opaque bidding processes, manipulation of financial reports and illegal fees.

The allegations are based on an internal investigation conducted by the Office of the State Minister of State Enterprises using the companies financial reports as well as audit reports from the Supreme Audit Agency and the State Development Comptroller.

The disclosure bolstered Susilo's campaign to combat corruption. State enterprises have long served as cash cows for unscrupulous officials as well as for organizations and political parties.

By maximizing state enterprises' performance, the government expects to reap more proceeds to help plug the widening state budget deficit due to the fuel subsidy.

Commission VI member Nusron Wahid said the government should identify what drove the losses and graft in the companies in order to be able to take the necessary steps in the future to address the problems.

"We should identify the root of the problem. If it's mismanagement, the option is restructuring the management. If it's not, another options could be privatizing the firms," he said.

Alleged corrupt SOEs


Companies Business
1. Bank Rakyat Indonesia-Banking
2. Bank Mandiri-Banking
3. Bank Negara Indonesia-Banking
4. Perusahaan Listrik Negara-Power
5. Asuransi Jiwasraya-Insurance
6. Perusahaan Gas Negara-Energy
7. Indofarma Pharmaceutical
8. Rajawali Nusantara Indonesia-Trading
9. Pupuk Kalimantan Timur-Fertilizer
10. Angkasa Pura I Airport-operator
11. Pelabuhan Indonesia II-Seaport operator
12. Pelabuhan Indonesia III-Seaport operator
13. ASDP-Transportation
14. Djakarta Lloyd-Shipping
15. Televisi Republik Indonesia-Television station
16. Radio Republik Indonesia-Radio station


Source: Office of the State Minister of State Enterprises
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