Official denies 40% graft of DAU<\/p>\n
Berni K. Moestafa and Pandaya, The Jakarta Post, Jakarta<\/p>\n
The Director General for Regional Autonomy Sudarsono denied on
\nTuesday reports that unscrupulous local government officials had
\nsiphoned off nearly 40 percent of regional decentralization
\nsubsidies, describing the alleged amount as illogical.<\/p>\n
Sudarsono said that even if corruption had taken place, the
\namount was likely less than 10 percent of the total funds
\ndisbursed.<\/p>\n
"I, the director general for regional autonomy, deny the
\nstatement by Pak Benny," he was quoted as saying by detik.com.<\/p>\n
Sudarsono was responding to a claim made by the chairman of
\nthe House of Representatives' budget committee, Benny Pasaribu.<\/p>\n
Benny told reporters on Monday that corruption was rampant
\namong regional authorities, who are being accused of misusing the
\nso-called General Allocation Fund (DAU).<\/p>\n
Citing unconfirmed reports, he said the amount equals nearly
\n40 percent of the DAU that the central government had disbursed
\nso far, to assist less well-off regions.<\/p>\n
He further alleged the massive graft occurred in almost every
\nregion, at about the same proportion of nearly 40 percent.<\/p>\n
But Sudarsono said it was unlikely that local officials could
\nhave taken nearly 40 percent of the DAU they received.<\/p>\n
"This is how the logic works: most regions spend 75 percent of
\ntheir DAU on routine spending for civil servants. If the abuse
\nwas 40 percent, then what are they (civil servants) supposed to
\nlive off of?"<\/p>\n
"Thus far they have been paid normally. So the figure (40
\npercent) itself must be wrong," Sudarsono explained.<\/p>\n
However, he did not totally rule out the possibility of
\ncorruption in the use of the DAU.<\/p>\n
But according to him, the amount is unlikely to be more than
\none third of the remaining DAU after 75 percent was spent on
\nroutine spending. This would equal less than 10 percent of the
\ntotal DAU.<\/p>\n
Sudarsono also said that Benny's comments would only further
\nstrain relations between Jakarta and regional governments.<\/p>\n
The central government has earmarked some Rp 60 trillion
\n(about US$5.75 billion) for the DAU in 2001. Its disbursements
\nbegan last January which coincided with the regional autonomy
\nlaws.<\/p>\n
The DAU allows regions to better cope with regional autonomy.<\/p>\n
Meanwhile, Benny on Tuesday backed down slightly from his
\nallegations, saying the amount of the corruption varied from
\nregion to region.<\/p>\n
He said he had found the highest figure to be 40 percent of
\nthe DAU that at least one region had received.<\/p>\n
When asked what he based his calculations on to arrive at 40
\npercent, he said to find out, an audit would be necessary.<\/p>\n
He said it was a moral obligation to highlight the abuse of
\npublic funds, and take corrective action against it, starting
\nwith an audit.<\/p>\n
Benny had earlier said that the House budget committee would
\nask the Supreme Audit Agency (BPK) to do an investigative audit
\nof the DAU funds.<\/p>\n
Sudarsono said he would welcome a plan for the BPK to embark
\non an investigative audit.<\/p>\n
In a related development, Finance Minister Boediono said he
\nwould request the Development and Finance Control Agency (BPKP)
\nto audit the use of the DAU.<\/p>\n
BPKP is in charge of conducting routine internal audits at
\nstate organs and is already in charge of auditing the DAU.
\nWhereas BPK is the state's external auditor.<\/p>\n
Boediono said in performing the audit, it should be enough to
\nuse only a few regions as samples.<\/p>\n
"I think by the end, it all depends on the regions. The
\ncentral government won't meddle in this. The use of the DAU is
\nentirely up to the regions," he said.<\/p>\n
Boediono urged provincial authorities to improve the
\ncontrolling procedure of the provincial legislative assemblies in
\norder to detect leakages in regional funds.<\/p>\n
Meanwhile, Minister of Home Affairs Hari Sabarno promised to
\nlook into the reports of massive corruption at regional levels.<\/p>\n
"We will find out which regional administrations have
\nmisappropriated the funds," Hari told reporters.<\/p>\n
Observers have long warned against corruption among local
\nauthorities eating into the DAU, channeled by the cash-strapped
\ngovernment.<\/p>\n
According to Benny almost all of the regional government
\nofficials who had received the DAU had spent the funds to buy
\nluxuries such as Mercedes Benz cars and property.<\/p>\n
Hari said he took the report seriously and would request the
\nrelevant agencies, BPK, BPKP and the Home Affairs Ministry's
\nInspectorate General to help follow it up.<\/p>\n
The alleged looting of taxpayers' money by regional
\ngovernments also raised concerns from Vice President Hamzah Haz.<\/p>\n
"It needs a thorough investigation," he said speaking at an
\nInternational Literacy Day ceremony.<\/p>",
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