BPK finds irregularities worth Rp 70.41b

BPK finds irregularities worth Rp 70.41b

Zakki Hakim and Rendi A. Witular, The Jakarta Post, Jakarta

The Supreme Audit Agency (BPK) has found 58 cases of
irregularities in six Jakarta agencies amounting to Rp 70.41
billion (approximately US$8.38 million) in the 2002 fiscal year
and the first semester in 2003.

BPK deputy chairman Soegiarto said the irregularities were an
old story repeated annually during routine audits.

"This is a clear proof that the administration never takes the
cases seriously. There is a detrimental effect here as the city
will lose a lot of money that can actually be used for
constructive development," Soegiarto told the press Friday.

BPK's report on the first semester of 2003 says irregularities
were found at the city's Sanitary Agency (Rp 989.07 million),
Mining Agency (Rp 13.4 billion), City Building Layout and
Supervision Agency (Rp 1.02 billion), Transportation Agency (Rp
6.9 billion), Planning Agency (Rp 37.2 billion) and Parking
Agency (Rp 10.9 billion).

The report shows that the irregularities refer to indicated
loss of revenue, deficit balance in revenue, unaccountable funds
and ineffective accounts.

For example, the BPK found the sanitation agency had directly
deducted 10 percent from the housing and shopping buildings
sanitation retribution fees before it submitted the money to the
city treasury office.

The pre-deducting practice has caused a difference of Rp
580.83 million in the city's revenue report.

Meanwhile, in the mining agency, the BPK has found that the
agency's special treasurer directly received tax payments from
taxpayers, involving a total of Rp 3.5 billion.

The BPK also found that one account worth Rp 38.34 million,
from the Rp 3.5 billion, was not immediately submitted to the
city's treasury office, but was held for more than 24 hours.

BPK concluded that the practice has made a possible
manipulation concerning the tax payment of Rp 3.5 billion and
recommended the agency's head reprimand the special treasurer
with a warning memorandum.

Meanwhile, Firman Hutajulu, head of the City Supervision
Agency (Bawasda), said on Friday that the BPK's findings did not
necessarily mean that embezzlement had taken place.

"The reported irregularities don't necessarily directly
translate as cases of corruption, collusion or nepotism," Firman
claimed.

He said the BPK includes in its report cases of failure to
meet revenue targets, non-procedural administrations and wrong
postings.

He said his agency had yet to receive BPK's report, but in the
meantime it would follow-up the cases based on media reports.

He said, however, his agency would recommend specific
solutions for every case in the particular agencies so that the
irregularity problems could be solved.