Fri, 23 Feb 2001

BPK: Irregularities in state finances exceed Rp 11.8t

JAKARTA (JP): The Supreme Audit Agency disclosed on Thursday that it found 1,760 instances of financial irregularities involving a total sum of more than Rp 11.8 trillion (US$1.2 billion) in the management of state budget and state companies in the fiscal years 1999 and 2000.

The agency said in a report to the House of Representatives that ministries or government offices which held the highest record of irregularities in budget management included the State Secretariat, the President's Office, the defense and security ministry, and the military and police headquarters.

"I am glad to report that the customs and excise tax directorate general was the cleanest institution in that it had the fewest cases of irregularities," the agency's chairman Satrio Budihardjo Joedono said.

The report, covered the results of audits conducted by the agency in the last quarter of 2000 for the state budget and finances of state companies for fiscal years 1999/2000 and 2000.

The agency never explicitly mentions corruption, malfeasance or embezzlement of funds in its audit report but implicitly divides them into three categories of what it terms irregularity. Hence irregularities can mean outright losses or simply potential losses.

The three kinds of irregularities are: deviation from the law, noncompliance with austerity and efficiency and deviation from set objectives.

Joedono said the agency audited Rp 37.11 trillion worth of state and provincial budgets and the finances of state companies over the fiscal year 1999/2000 (March to April) and discovered 834 instances of irregularities involving a total amount of Rp 3.88 trillion.

"Of the Rp 44.35 trillion worth of state budget and state companies' finances we audited in the fiscal year 2000 (April- December), we found 925 instances of irregularities involving Rp 8.05 trillion," he added.

With regard to state companies, the agency found irregularities worth Rp 3.2 trillion in potential losses, most of which took place at PT Dirgantara Indonesia, PT PN X1 plantation company, PT PAL shipyard, PT Inhutani forestry company and Bank Mandiri.(dja/vin)