BPK finds over 2,000 irregularities, state loses Rp7.1 trillion<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
The Supreme Audit Agency (BPK) found 2,128 cases of
\nirregularities in the management of state funds during the second
\nsemester of last year, with potential losses to the state
\ntotaling Rp 7.12 trillion (about US$765 million).<\/p>\n
While an irregularity by the BPK definition does not
\nnecessarily mean malfeasance, at least two cases worth a total of
\n$3.3 million in the Ministry of Defense and Ministry of Culture
\nand Tourism showed indications of corruption, BPK chairman Anwar
\nNasution said in a report presented to the House of
\nRepresentatives on Tuesday.<\/p>\n
\"We have forwarded these two cases to the Attorney General's
\nOffice for further investigation,\" Anwar told a House plenary
\nsession to discuss the agency's regular audit of state funds.<\/p>\n
The audit was conducted between July and December 2004 on 586
\naccounts worth Rp 282.89 trillion, which represents 64.84 percent
\nof the funds allocated under the 2004 state budget and local
\ngovernment budgets, and in the financial reports of state-owned
\nand local government enterprises.<\/p>\n
On the two cases that showed indications of corruption, Anwar
\nsaid that one was last year's $3.24 million procurement of MI-17-
\nIV helicopters by the Ministry of Defense and the Indonesian
\nArmy, while the Ministry of Culture and Tourism appeared to have
\nimproperly accounted for state inventories worth up to Rp 1
\nbillion.<\/p>\n
Anwar acknowledged that the audits were based on the BPK's
\nold auditing procedures and formats, and were also conducted by
\nBPK staff during the 1998-2004 term.<\/p>\n
\"In the future, we will conduct our audits using new -- and
\nhopefully better -- procedures and formats,\" he said.<\/p>\n
\"The new procedures and formats will include a performance
\naudit, a financial forensic audit and a fraud audit as stipulated
\nby Law No. 15\/2004 on state treasury management, accounting and
\nauditing, as well as a general audit.\"<\/p>\n
Commenting on the government's 2003 State Budget Report, Anwar
\nreiterated that the BPK had decided \"to give no opinion on the
\nreport.\"<\/p>\n
\"There are two main factors that have led us to do this,\" he
\nsaid.<\/p>\n
\"First, the government has yet to overhaul its accounting
\nsystem, and second, the government has still not followed up on
\nfindings of irregularities in our reports over the past four
\nyears.\"<\/p>\n
Anwar further said that the BPK -- at the House's request --
\nwas also conducting an audit on the funding of the 2004 general
\nelection and fuel subsidy spending.<\/p>\n
\"The audit on the funding of the general election is now being finalized,
\nand we expect to have the complete results and a report within
\nthree weeks,\" he said.<\/p>\n
A source from the BPK told The Jakarta Post that the audit
\nagency had found preliminary irregularities amounting up to Rp 90
\nbillion out of total general election funding of Rp 2 trillion.<\/p>\n
The irregularities included Rp 60 billion for the procurement
\nof ballot boxes and Rp 30 billion for the procurement of ballot
\npapers, ink and ballot envelopes.<\/p>\n
Despite the BPK's regular identifying of possible abuses in
\nstate funds by government institutions, incidences of follow-up
\naction by the relevant agencies have been few and far between,
\nwith many cases ending up unresolved.<\/p>\n
Under the prevailing regulations, the BPK's reports are
\nsupposed to be used by the relevant ministries and state
\ninstitutions as a basis for determining the necessary follow-up
\naction. In cases where the BPK believes there are strong
\nindications of corruption, it can directly report its suspicions
\nto the AGO.<\/p>\n
Related photo Page 13<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bpk-finds-over-2000-irregularities-state-loses-rp71-trillion-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }