BPK to audit SOEs to curb financial irregularities<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The Supreme Audit Agency (BPK) will audit all state-owned
\nenterprises (SOEs), both those under the central government and
\nthose under regional administrations, starting in 2006 as
\nstipulated in the new state finance bill.<\/p>\n
BPK Chairman Satrio B. Judono said on Friday that the audit
\nwould focus on finding financial irregularities at the SOEs,
\nwhich for many years had been treated as cash-cows by people who
\nwere well-connected in political circles.<\/p>\n
He also said that the move was crucial to help minimize state
\nlosses.<\/p>\n
\"Under the new bill, state audit of SOEs, which is currently
\nunorganized, will all be handled by BPK,\" said Satrio at a press
\nconference, adding that the audit would also cover publicly
\nlisted SOEs.<\/p>\n
The state audit of 144 SOEs under the central government has
\nbeen conducted by either the State Finance and Development
\nComptroller (BPKP) or the Directorate General of Financial
\nInstitutions. BPK has only audited specific SOEs by special
\nrequest.<\/p>\n
BPK previously revealed that throughout 2001 and 2002, it had
\nfound Rp 456.3 trillion worth of irregularities and abuse of
\nstate funds, mostly in the implementation of the 2001 and 2002
\nstate budgets.<\/p>\n
BPK said that the findings were the result of an inspection
\nwhich covered the implementation of budgets in 2001 and 2002 for
\nthe central and regional governments, and state companies
\noperating under the central and regional governments.<\/p>\n
The uncovering of irregularities in the past had mostly passed
\nby unheeded, partly due the absence of a strong legal basis.<\/p>\n
The House of Representatives, however, last month approved the
\nstate finance bill, which is to ensure transparency and
\naccountability in managing state finances.<\/p>\n
It is hoped that the move will help curb the massive
\ncorruption at state institutions, including SOEs.<\/p>\n
Under the Finance Law, if any irregularities in the use of
\nstate funds are found, not only will the officials in charge of
\nthe funds have to pay for the losses, they can also be jailed for
\nthe crime.<\/p>\n
The Law also emphasizes the principle of equality before the
\nlaw, which means that any official, even the leader of an SOE who
\nhas committed the wrongdoing, will be punishable equally under
\nthe law and that they would be accorded no special concessions
\nnor privileges.<\/p>\n
BPK is expected to start the audit in 2006, after all SOEs
\nhave submitted their financial reports to the agency at the end
\nof the 2005 budgetary period.<\/p>\n
Satrio said that in accordance with Chapter VIII of the state
\nfinance bill, all SOEs operating under the central government
\nmust attach their financial reports with the government state
\nbudget accountability report, which would then be submitted to
\nthe House of Representatives.<\/p>\n
BPK is to audit the financial report first, before it is
\npassed on to the House.<\/p>\n
In the case of SOEs operating under regional governments, they
\nmust attach their financial report to the local government's
\nbudget accountability report, which will then be tabled at the
\nlocal legislative council.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bpk-to-audit-soes-to-curb-financial-irregularities-1447893297",
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"sponsor": "Okusi Associates",
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