BPK finds huge irregularities in state funds
Dadan Wijaksana, The Jakarta Post, Jakarta
The Supreme Audit Agency (BPK) said on Tuesday it had found irregularities amounting to the value of Rp 456.3 trillion (about US$60 billion) in the use of state funds in 2001 and 2002, providing yet further evidence that efforts to stamp out graft and corruption have been fruitless.
BPK Chairman Satrio B. Judono disclosed the staggering finding when he delivered the agency's biannual report before a House of Representatives' plenary session.
"The findings were the results of an inspection which covered the implementation of budgets in 2001 and 2002 for regional and central governments, and state companies operating under the central government and in the regions," Satrio told legislators, adding that the size of all of the budgets audited by the agency totaled Rp 2,463 trillion.
As BPK did not specify the irregularities, they could mean outright losses or simply potential losses. But the amount is so huge that it even surpasses the Rp 336.2 trillion achieved in revenue in the 2002 budget.
Judono also expressed disappointment over the findings, especially such a huge potential loss, which only reaffirms the poor supervisory role of the government.
"As a common man of course I'm disappointed. Not only because of the huge loss to the state, but it also shows that, although we do this every time, these things are still happening," he added.
This highlights yet again that the fight against the die-hard practices of graft and corruption has a long way to go.
Since the so-called reform era in 1998 -- which was marked by the downfall of president Soeharto -- pledges to eradicate such practices in the country had been made by succeeding administrations.
Tuesday's report, however, shows that as time has gone by, the situation has worsened.
Of the total irregularities, Satrio said that 387.1 trillion in losses due to irregularities had occurred throughout 2001 with the remainder estimated to have occurred in the following year.
Irregularities at state-owned companies were the largest -- in terms of percentage -- they were recorded to have misused close to 50 percent of the budget.
Of the Rp 35.4 trillion that was inspected, the potential losses could well reach Rp 17.7 trillion.
The losses due to irregularities were much more staggering the year before, reaching Rp 322.5 trillion.
In the meeting, Judono also said that the report did not represent the actual amount of losses the country might have to suffer, as not all the concerned parties had given their full support to the audit process.
House Speaker Akbar Tandjung, said that he also deplored the huge irregularities, adding that the report was good input for the government to follow up.
"We, along with the government and the related departments will follow this up under the existing procedures, to make sure that we can minimize the amount of funds lost," said Akbar, who is facing a prison sentence in a corruption case.
Based on current regulations, BPK's reports will later be used in all related ministries and other state institutions as a basis to determine the necessary follow-up. Experience has shown, however, that little is usually done as a result of such reports.