Audit agency wants authority in capital market to curb fraud
Rendi A. Witular, Jakarta
The Supreme Audit Agency (BPK) will propose to the upcoming new government and new members of the House of Representatives to enhance the agency's role in auditing publicly listed state enterprises under the planned revision of the capital market law.
BPK chairman Satrio B. Judono said Law No.8/1995 on Capital Market contained articles that contradict laws on state enterprises, on BPK, and on state finances, which resulted in the inability of the agency to fully supervise state enterprises.
"The capital market law needs to be revised. The agency will definitely propose to the new government to include the role of BPK in auditing state enterprises in the (revised) law," said Satrio at a press conference on Friday.
Satrio explained that the BPK audit would focus on finding financial irregularities at the state-owned enterprises, which for many years had been treated as cash-cows by people who were well-connected in political circles.
Based on the capital market law, all listed companies, including state-owned enterprises, must be audited by public accountants (not the BPK), which have received licenses from the Ministry of Finance.
Because of this contradicting law, some 47 state-owned enterprises failed to submit their financial accounts to BPK by the July 2004 deadline, and as a result, the BPK first semester report submitted to the House last month did not contain the accounts of these particular companies.
According to the BPK report, the listed state-owned enterprises had argued that submitting their accounts to BPK would be in conflict with the capital market law.
Among the listed companies that have not submitted their accounts to the BPK are PT Bukit Asam, PT Timah, PT Perusahaan Gas Negara, PT Indofarma, PT Kimia Farma, PT Semen Gresik, PT Telkom and PT Aneka Tambang.
The current government has already proposed an amendment to the capital market law, however, there is no clause about the role of BPK. At present, the deliberation of the amendment remains unclear due the changes in the House members.