BPK finds huge irregularities in state funds

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.