BPK set to audit eight banks over alleged misconduct<\/p>\n
JAKARTA (JP): The Supreme Audit Agency (BPK) said on Wednesday
\nit would start auditing later this month eight commercial banks
\nreceiving Bank Indonesia's emergency liquidity credits to
\ninvestigate alleged malfeasance in the usage of funds.<\/p>\n
BPK chairman Satrio Budihardjo \"Billy\" Joedono said some 60
\nbanks obtained liquidity credit from the central bank, however,
\nonly eight were suspected of misusing the credit, mostly due to
\nthe large amount of funds they received.<\/p>\n
Billy declined to mention the banks.<\/p>\n
\"The audit will include how the banks managed the funds as
\nwell as the process and mechanism of how the funds were
\nchanneled,\" Billy told reporters after handing over audit results
\nof the use of the 1997\/1998 budget to the House of
\nRepresentatives.<\/p>\n
Joedono said BPK would complete its audit by April, despite
\nthe fact that some of the eight banks were closed, and data might
\nhave been lost.<\/p>\n
\"We're expecting difficulties, including from banks trying to
\nhinder the audit by erasing data,\" Joedono said.<\/p>\n
BPK disclosed in December the damning results of its audit on
\nBank Indonesia, in which it alleged that the central bank had
\nimproperly channeled more than Rp 80 trillion (US$10.8 billion)
\nof liquidity support to troubled banks during the economic crisis
\nin 1997 and 1998.<\/p>\n
The central bank channeled a total of Rp 164.5 trillion in
\nliquidity credits to cash-strapped banks as part of the
\ngovernment's blanket guarantee program.<\/p>\n
Billy said the BPK team of auditors would conduct a general
\naudit on each of the banks' balance sheets and would afterwards
\nconduct a due diligence on the use of the liquidity credits.<\/p>\n
Joedono said BPK would likely involve officials and auditors
\nof the Development Finance Comptroller (BPKP) in the team.<\/p>\n
Meanwhile, in its report to the House, Billy said BPK found
\n1,295 cases of irregularities in the use of the 1997\/1998 central
\ngovernment budget, provincial administration budgets and state
\nfirms' spending.<\/p>\n
The irregularities could result in Rp 13.6 trillion in
\npotential losses.<\/p>\n
The agency found 318 cases of irregularities in the state
\nbudget, with potential losses of Rp 6.12 trillion and 630 cases
\nof irregularities in provincial budgets with potential losses of
\nRp 2.55 trillion.<\/p>\n
In state companies, BPK found 170 cases of irregularities with
\npotential losses of Rp 3.99 trillion, and 117 cases in provincial
\nadministration-owned companies with potential losses of Rp 1.04
\ntrillion.<\/p>\n
\"Some of these findings have yet to be resolved,\" Joedono said
\nwithout further elaborating.<\/p>\n
The irregularities the agency reported included 683 cases of
\nviolations against prevailing laws and regulations that resulted
\nin potential losses of Rp 9.1 trillion.<\/p>\n
BPK also found Rp 3.2 trillion in potential losses due to
\ninefficiencies and ineffectiveness in managing state programs.
\n(03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bpk-set-to-audit-eight-banks-over-alleged-misconduct-1447893297",
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