Auditor's findings<\/p>\n
The most worrisome findings of the Government Finance
\nComptroller (BPKP) which were reported to the House of
\nRepresentatives last Wednesday were not the many instances of
\nmalfeasance but the underlying trends which show why the anti-
\ngraft drive remains weak. We don't mean, however, to belittle the
\nsignificance of the 18,578 instances of irregularities uncovered
\nin the management of state finances, including state companies,
\nin fiscal 1995\/96, which involved Rp 888.72 billion (US$398
\nmillion). Though the amount of money involved in the uncovered
\nirregularities in 1995\/96 decreased from Rp 2.65 trillion in
\nfiscal 1994\/95, the number of irregularities discovered increased
\nfrom 15,732.<\/p>\n
But the findings also should be seen within the scope of the
\nauditing work done by the comptroller. Different from the scope
\nof responsibility of an ordinary auditor, the comptroller is
\nempowered to conduct not only general audits but also
\noperational, special and post-audits.<\/p>\n
Whatever yardstick is used to assess the comptrollers'
\nfindings, they imply an extensive incidence of irregularities in
\nthe management of state finances. That also has been reflected in
\nthe results of the polls of foreign businesses periodically done
\nby several international research institutes. However
\nquestionable the methodology used in the surveys, Indonesia is
\nperceived by many business people as one of the most corrupt
\ncountries in the world.<\/p>\n
The government, though, should be commended for allowing the
\ncomptroller to publicly announce the general outlines of its
\nfindings. That, we think, is evidence of the government's
\ndetermination to fight corruption.<\/p>\n
But the comptroller's qualitative assessment of its findings
\nreveals more worrisome trends, which, if not dealt with more
\nseriously, could weaken the anti-graft campaign. One of the most
\ndiscouraging trends, as comptroller chief Soedarjono noted, is
\nthe laxity on the part of relevant government agencies to follow
\nup on the comptroller's findings.<\/p>\n
The problem is that the comptroller is not empowered to act on
\nits findings. It can recommend preventive measures but it can do
\nnothing if the recommendations are not implemented. The
\ncomptroller can also bring the corruption cases to the Attorney
\nGeneral's Office, but the process is arduous and not all
\ninstances of irregularities are triable in court.<\/p>\n
We are also discouraged by Soedarjono's disclosure that the
\nmechanism of built-in supervision, as stipulated in Presidential
\nInstruction No.5\/1983, has not been implemented properly due to
\nthe inconducive bureaucratic atmosphere for effective supervision
\nand a conformist attitude among officials.<\/p>\n
The built-in supervision mechanism, if implemented properly,
\ncould have been effective for curbing corrupt practices. In fact,
\nthe mechanism, to a large extent, follows the procedures and
\ndocumentation requirements applied by the ISO 9000 series quality
\nmanagement system. It clearly sets the objectives, defines the
\nline of responsibility, procedures, processes and the standards
\nof performance as well as effective reviews and a documentation
\nsystem.<\/p>\n
But as long as the bureaucratic atmosphere remains unfavorable
\nfor motivating supervisors to execute their responsibilities, the
\nsupervision mechanism will be good only on paper and will remain
\na political slogan. In fact, the manner in which the government
\nhandled the instances of malfeasance disclosed by the print media
\nover the past year did not help boost the morale of supervisors.
\nInstead, it discouraged idealistic supervisors and strengthened
\nthe conformist attitude among bureaucrats.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/auditors-findings-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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