House mum on investigative audit for IBRA<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
The House of Representative needs to submit a formal request for
\nthe Supreme Audit Agency (BPK) to conduct an investigative audit
\non the Indonesian Bank Restructuring Agency (IBRA), says a senior
\naudit official.<\/p>\n
BPK head Satrio \"Billy\" Budiharjo Joedono responded to
\njournalists on Friday that the House had not made such a request,
\neven though \"reporters have repeatedly asked (about this issue)\".<\/p>\n
Several lawmakers have told the media over the past few weeks
\nthat the House might ask the audit agency to conduct an
\ninvestigative audit on IBRA. Top government officials and
\nanalysts, including State Minister of National Development
\nPlanning Kwik Kian Gie and economist Faisal Basri, have also
\nurged an audit into IBRA for possible cases of corruption or of
\nlegal violations during the agency's five-year existence. IBRA
\nis scheduled to be closed down on Feb. 27, when its mandate
\nexpires.<\/p>\n
Billy also said the House needed to explain what it meant by a
\ncomprehensive investigative audit, as an investigative audit
\nverified whether an action or activity had been properly
\nexecuted.<\/p>\n
\"During IBRA's operation, millions of measures and activities
\nhave been implemented,\" he said. \"(Of these) Which specific ones
\nneed to be checked for their having been properly executed?\"<\/p>\n
Responding to a question as to whether or not the BPK would
\nundertake such an audit on its own initiative, Billy said the
\nagency would focus on a performance audit.<\/p>\n
The BPK launched a performance audit in early January to see
\nif IBRA had carried out its mandate, which was issued in 1998
\nafter the monetary crisis.<\/p>\n
Three groups of key performance indicators are used in a
\nperformance audit: The first group, used to determine the success
\nof the recapitalization program, comprises capital adequacy
\nratio, non-performing loans ratio, loan to deposit ratio and
\nreturn on equity.<\/p>\n
The second, comprising debtor participation, number of credits
\nresolved and credit restructuring implementation, assesses the
\nasset restructuring program.<\/p>\n
The third assesses the recovery of bank liquidity funds and
\nincludes divestment timing, consultancy cost and the recovery
\nrate of government funds injected into troubled banks during the
\ncrisis.<\/p>",
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"sponsor": "Okusi Associates",
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