Audit agency reveals billions of rupiah in losses

Audit agency reveals billions of rupiah in losses

JAKARTA (JP): The Supreme Audit Agency revealed yesterday
financial losses amounting to billions of rupiah by the
government due to poor state finance management over the second
semester of the 1996/1997 fiscal year.

Chairman of the agency J.B. Sumarlin told leaders of the House
of Representatives that the losses were a result of 607
irregularities the agency found in its auditing of the state
budget, regional budgets, and state and regional companies from
October last year to March this year.

The irregularities included those discovered in 234 projects
financed by the state budget over the same period.

In its report to the House, the agency cited losses amounting
to "billions of rupiah" but stopped short of specifying the exact
amount.

Yesterday was Sumarlin's first appearance in the House since
Harmoko was elected House Speaker early last month. Sumarlin last
addressed House leaders in June, when he unveiled hundreds of
billions of rupiah in state financial losses.

Also present in the hearing were deputy speakers Syarwan
Hamid, Abdul Gafur, Ismail Hasan Metareum and Fatimah Achmad.

Sumarlin told Harmoko that the agency's latest audit
discovered that losses caused by regulatory violations topped the
list with 243 findings, followed by inefficiency which occurred
in 148 cases.

The agency also found 117 cases of improper use of resources,
67 cases of poor administration and 32 cases of inefficient use
of resources.

"Generally speaking, these findings suggest the need for
further correction in the use of state funds, whether they are
allocated to the state budget, regional budgets, state companies
or regional companies," Sumarlin said upon submitting the agency
report.

He said strict discipline in state spending would not only
improve efficiency and effectiveness of state expenditures, but
also the government's accountability in the implementation of the
budget.

Sumarlin said the agency had audited 1,658 expenditures since
the 1993/1994 fiscal year, during which it found 4,451
irregularities ranging from poor administration to inefficiency.

He said the agency has relayed the bulk of these findings to
the related ministries and institutions for follow-up measures.

"In general the findings have been or are being responded to,
but we have not been informed of all of the correctional
measures," Sumarlin said.

He suggested that the government revise the 1973 law on the
audit agency, saying that the present law does not enable the
agency to exercise a follow-up to its findings.

House Speaker Harmoko said the House would use the audit
results to help it exercise its control on government spending.

"Our main focus is that the agency's findings receive a proper
response. This would support our effort to establish a clean
government," Harmoko said.

He also called on the government to carry out its economic
reform program consistently and if necessary launch more policies
in a bid to cut high spending rates. (amd)