Audit agency wants authority in capital market to curb fraud
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.