KPK Dismantling BUMN, Using Consultant Services Billions Of Rupiah Unclear To Hide Expenses

KPK Vice Chairman Alexander Marwata (Photo; Wardhani Tsa Tsia/VOI)

JAKARTA - Deputy Chairman of the Corruption Eradication Commission (KPK) Alexander Marwata, believes that many State-Owned Enterprises (BUMN) use expensive consultants in their business but do not produce anything. He even said that this was actually a way to get money out of the company.

"In terms of fraud, the company uses the services of a consultant as a mode of spending money," Alexander told reporters at the KPK's Red and White Building, Kuningan Persada, South Jakarta, Wednesday, December 22.

"I'm sure there are also many SOEs, many use consultants, it's unclear, what consultants sometimes cost billions of rupiah, but we don't understand what the results will be," he added.

Not only that, Alex said, there are many other modes of cheating that can be carried out by high-ranking state officials. One of them is by hiding unofficial expenses in other cost items such as marketing costs to fee management.

"It's like that. It's a form of cheating that is hidden as if it's a normal transaction," he said.

Furthermore, Alexander said this mode occurred in the corruption case in the procurement of aircraft and aircraft engines for PT Garuda Indonesia which ensnared a number of high-ranking officials at the state-owned company.

According to him, the money from the fraudulent practice is considered as payment for consulting services for the purchase process carried out by former President Director (Director) of PT Mugi Rekso Abadi (MRA) Soetikno Soedarjo. This then made the judge not want to seize the money.

"The money received by the company controlled by Soetikno was considered a legal business by the judge, so the judge did not want to confiscate the money," said Alexander.

"So, Garuda signed contracts with companies controlled by Soetikno, as if Garuda could not buy directly from Airbus or enter into direct contracts, it had to go through an intermediary like before," he added. The company controlled by Soetikno is Intermediary Connaught International. Pte Ltd, PT Ardhyaparamita Ayuprakasa, Hollingwingsworld Management International Ltd Hongkong, and Summerville Pacific Inc. The company arranged the purchase contracts for aircraft and engines by PT Garuda Indonesia to Airbus SAS, Rolls-Royce Plc, Avions de Transport Regional, and Bombardier Canada.

From this practice, consulting services which have become a loophole for corrupt practices have made the state spend up to Rp. 390 billion.

"About USD 14.619 million or around Rp. 205 billion and Euro 11.553 million, or around Rp. 185 billion. This means that what Soetikno is still in control of, which is actually in the indictment we ask the judge to confiscate, is still Rp. 390 billion, that's a big amount of money," said Alex.

The KPK considers the money to be Soetikno's biggest receipt in this case. However, the judge claimed that the money was lawful because it was part of PT Garuda Indonesia's work contract with the company controlled by Soetikno, so it could not be confiscated.

"The judge is of the opinion that because the money received as a fee or the defendant's services as an intermediary from his duties as a commercial advisor agreement, there is a contract," said Alex.