Managing Aceh relief
\nand reconstruction<\/p>\n
As the initial horror of the tsunami catastrophe recedes and
\nemergency aid flows into the most affected areas, commentators
\nare raising doubts over the management of the billions of dollars
\ncommitted for relief and the reconstruction of Aceh.<\/p>\n
Urip Hudiono (The Jakarta Post, Business, Jan. 10), wants the
\nfunds kept separate from the State Budget, and quotes economist
\nFaisal Basri and non-governmental organizations (NGOs) as
\npreferring an independent body to monitor and manage the aid
\nfunds in Indonesia, because the public still doubts the
\ngovernment's credibility, as it still plagued by corruption.<\/p>\n
Now is not the time to establish yet another public body that
\nbypasses financial management and budget legislation. The
\nIndonesian government must show what good governance is about by
\nbringing all aid within budgetary authorization and reporting.
\nThe Aceh aid is public money, whether provided in cash or kind.
\nUnder Law 17\/2003, the President, the legislature and agency
\nheads are responsible for these public funds.<\/p>\n
The Ministry of Finance must take responsibility for ensuring
\naid funds are managed properly. This includes reporting these
\nmonies in whole in government financial statements that show
\ntotal revenues received, how those funds have been expended and
\nthe assets and liabilities created. The size and nature of
\nrevenues and expenditure from the tsunami tragedy will be
\nextraordinary, therefore they need separate disclosure in a note
\nto the government's consolidated financial statements. These
\nfinancial statements need to be signed off by state auditors.<\/p>\n
The appropriate financial reporting standards to be applied
\nare the international public sector reporting standards (IPSASs)
\nissued by the International Federation of Accountants for
\ngovernments using either the cash and accrual bases of
\naccounting.<\/p>\n
Indonesia needs to demonstrate leadership and good management
\nof government finances to the international community on this
\noccasion. As Endy Bayuni says (the Post, Jan. 10, God's grace,
\ngood governance and our reputation), if the donated funds for
\nAceh are corrupted, it will bring terrible shame to the nation.<\/p>\n
GRAEME MACMILLAN
\nDirector
\nPublic Management International Institute
\nJakarta<\/p>",
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"sponsor": "Okusi Associates",
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