State finance accountability<\/p>\n
The Supreme Audit Agency (BPK) will be armed with stronger and
\nbroader powers with which to perform its duties and to enforce
\nits recommendations under a public finances accountability bill
\nthat is expected to be passed soon by the House of
\nRepresentatives.<\/p>\n
The legislation stipulates, among other things, that anyone
\nfound guilty of obstructing an audit by the BPK will be liable to
\na maximum jail term of 18 months and\/or a fine of up to Rp 500
\nmillion (US$55,500), while any state officials who fail to act on
\nthe recommendations of the BPK shall be subject to administrative
\nsanctions, as provided for in the Civil Service Law.<\/p>\n
After its enactment, the new law will complete the foundations
\nfor the building of the necessary legal and institutional
\nframeworks for better management, accountability and transparency
\nin the public finances.<\/p>\n
The bill forms an integral part of a package of three pieces
\nof legislation that was proposed to the House in September 2000
\nas part of the government's ongoing efforts to enhance good
\ngovernance, democracy and transparency in the management of the
\nstate finances.<\/p>\n
The first part of the package, on the state finances, was
\napproved by the House in March 2003, as Law No. 17\/2003, while
\nthe second, on the state treasury, was passed into law late last
\nyear as Law No. 1\/2004<\/p>\n
The public finances accountability bill further strengthens
\nthe role and functions of the Supreme Audit Agency (BPK) as the
\nsole independent, external auditor responsible for auditing all
\nelements and components of the state finances, including the
\nbudgets of the central government and all local administrations,
\nand companies owned by both the central and local governments.<\/p>\n
Even publicly-listed state companies, which the Capital Market
\nLaw requires to be audited by public accountants, are also
\nsubject to the oversight of the BPK.
\n The new bill requires publicly-listed state companies to submit
\ntheir audited financial statements to the BPK for further
\nassessment, and the BPK is authorized to reaudit these statements
\nif it finds that they fail to satisfy the principles of
\naccountability.<\/p>\n
It also allows the BPK to conduct general financial audits,
\nperformance audits and special audits in respect of all aspects
\nof the management of the public finances.<\/p>\n
The three pieces of legislation are mutually related and
\nreinforcing. The State Finances Law, for example, stipulates that
\nthe financial accountability of both the central government and
\nlocal administrations shall be audited by the BPK.<\/p>\n
In provisions specially designed to deter officials from
\nembezzling public funds, the State Finances Law also stipulates
\nthat any official who is charged with receiving, keeping, paying
\nand\/or transferring money, securities or state property is deemed
\nto be a treasurer and, accordingly, is obliged to account to the
\nBPK. And a treasurer, as defined by the Law, shall be held
\npersonally liable for any losses of state funds consigned to his
\ncare.<\/p>\n
This stipulation will, hopefully, go a long way toward
\ninstituting a high level of discipline in the management of our
\npublic finances. Treasurers should now be courageous enough to
\nrefuse orders or directives from their superiors or senior
\nofficials that run against budget or treasury rules, knowing that
\nthey can no longer escape responsibility or seek protection by
\nhiding behind the coattails of their bosses, as many officials
\nnow attempt to do.<\/p>\n
The public finances accountability bill further stipulates
\nthat it is the BPK that will be responsible for determining the
\namount, and conducting the collection, of restitution in respect
\nof shortfalls that occur in state funds, cash flows or
\ngoods\/assets under the management of treasurers in the state
\nagencies and state companies that come under the auspices of both
\nthe central government and local administrations.<\/p>\n
Legislation alone will not be effective in preventing
\ncorruption and curbing inefficiency in the management of our
\npublic finances as the effectiveness of the legislation
\nultimately depends on the mentalities of the officials who
\nimplement them.<\/p>\n
But stronger rules on budget allocations, accounting systems,
\ncash and debt management, procurement, internal-control systems
\nand independent audits, as provided for in the new legislation,
\ncould help to greatly minimize the opportunities for malfeasance.<\/p>\n
______<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/state-finance-accountability-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }