BPK reports huge abuse of state funds

The Supreme Audit Agency (BPK) submitted the findings on Thursday of its regular audit on the management of state funds to the People's Consultative Assembly (MPR), saying it had so far uncovered 22 major cases of likely corruption involving trillions of rupiah.

The report, submitted on the first day of the MPR annual five- day session, said the cases had been notified to the National Police and Attorney General's Office (AGO) for further action.

"The 22 cases displayed strong prima facie indications of corruption, with amounts worth some Rp 166.5 trillion (US$18.22 billion) and $62.7 million being involved," BPK chairman Satrio B. Joedono told the MPR members.

The amounts were based on audits conducted by the agency on the utilization of state funds over the past few years by the central government (including Bank Indonesia and other agencies), local governments and state-owned enterprises (SOEs).

No details were given regarding the cases. But Amrin Siregar, a member of the BPK, said that most of the corruption was connected with Bank Indonesia's liquidity support program -- a bail-out program worth Rp 144.5 trillion, which the central bank injected into the banking sector to help it cope with the devastating impact of the 1997-1998 financial crisis.

"The state has so far recovered little of this money," Amrin told The Jakarta Post.

Susilo Bambang Yudhoyono, who is seen to become the country's next president, has promised to fight corruption as among of this top priorities. -- JP