BPK finds Rp 27.22t in unaccounted funds

BPK finds Rp 27.22t in unaccounted funds

Urip Hudiono, The Jakarta Post/Jakarta

The Supreme Audit Agency (BPK) has found up to Rp 27.2 trillion
in funds (some US$3.02 billion) in 16 bank accounts which fall
under the supervision of the minister of finance in the 2003
state budget that the government has not accounted for.

The finding is among several accounting discrepancies that the
BPK had found, and reported to both the House of Representatives
and the government in its budget audit report on Tuesday.

It also proves that the government has not taken appropriate
actions to improve its state accounting system, as the BPK has
continuously found similar discrepancies over the last four
years.

"The government has still not acted upon BPK's findings, as
similar accounting inconsistencies are still appearing," BPK head
Anwar Nasution said in a letter he sent to the President along
with the audit result.

In its audit of the 2003 budget, the BPK found that as of Dec.
31, 2004, the 13 accounts under the finance minister had been
used to stash state funds worth Rp 21.8 trillion from the
repayment of loans that the government had disbursed to state-
owned enterprises and regional administrations.

The BPK also found three accounts that were used to hold state
revenue amounting to Rp 5.42 trillion from the oil, gas, mining
and fisheries sector.

In addition, the BPK also found a total of Rp 678 billion that
several ministries had been late in handing over to the finance
minister, and Rp 14.3 billion, some of which had not been handed
over altogether.

In the light of these findings, Anwar said the agency would
wait for further responses from both the House of Representatives
and the government.

"If the House says we have to audit the budget again, then we
will do so," he told reporters on Thursday, after a consultative
meeting with the House of Representatives' financial affairs
commission on its audit.

"As for the response from the government, we will be expecting
a new final accounting of the budget for us to verify if another
audit is indeed required."

Meanwhile, House member Dradjad H. Wibowo said the discovery
of the unaccounted funds was particularly ironic, as they were
found in the finance ministry, which is supposed to set an
example for other ministries.

"Other ministries are not even allowed to have off-budget
accounts," he said.

"But here, the finance ministry itself is prone to
irregularities."

Dradjad further explained the finding would surely raise
questions on the accountability of such funds, including the
interest.

In a written answer to the House in a Jan. 18 hearing,
Minister of Finance Yusuf Anwar acknowledged the existence of the
accounts, and explained that they were needed as temporary
accounts to hold various funds, before the ministry can properly
set up a single and integrated account for all the funds.