Alfian, Jakarta – A lawmaker inquiry over the country's oil and gas management kicked off Thursday with the BPK disclosing a letter it sent to police on indications of graft in the distribution of subsidized fuel.
The Supreme Audit Agency (BPK) sent the letter to the National Police on July 28 after making an audit on the distribution of subsidized fuel early this year.
The audit followed a growing demand for the agency to unravel mismanagement in the oil and gas sector, which has been riddled with corruption.
A copy of the letter received by The Jakarta Post after the inquiry session revealed several items the police could feasibly investigate, including the missing revenue from 4.59 million liters of fuel that exceeded the subsidized fuel quota in 2007.
The letter also included the finding of 325 kiloliters of subsidized fuels illegally shipped to Christmas Island aboard the KM Caraka Jaya Niaga III-6 and the KM Caraka Jaya Niaga III-12, both vessels rented by state-owned oil and gas company PT Pertamina.
BPK member Udju Djuhaeri, who was responsible for the oil and gas audit, said the reported findings were just the tip of the iceberg on corruption in the sector.
"We have audited subsidized fuels management for 2007 and I promise the results will surprise you all. Today we actually have an appointment to discuss this matter with the National Police crimes division," Udju told lawmakers.
In its letter to the police, BPK chairman Anwar Nasution said the suspected graft was caused by weak supervision and protracted corruption and nepotism.
"We hope the police can take proper action to respond to these apparent violations," Anwar said in the letter.
National Police spokesman Insp. Gen. Abubakar Nataprawira said he had no knowledge over whether the letter had been received by the police.
The House of Representatives has formed a special inquiry committee to question the government's policy in raising fuel prices, following strong public protests and allegations that billions of dollars in revenue from the oil and gas sector were lost through inefficiency and corruption.
Pertamina is the sole supplier and distributor of subsidized fuel. Pertamina spokesperson Wisnuntoro, however, denied the company's involvement in any wrongdoing suggested by the BPK.
"I think it is just like other fuel smuggling cases alleged by law enforcers. Some people accumulate subsidized fuels and then smuggle them abroad. Pertamina has nothing to do with this," he said.
Lawmaker Rama Pratama, who is also a member of the inquiry committee, said the BPK's findings were still very general. "We expect the KPK not only to investigate the alleged irregularity at the corporate level, but also at the policymaking level," he said.
The inquiry team is scheduled to convene again on Aug. 27 with energy experts.