BPK reviews work over past 10 months

BPK reviews work over past 10 months

JAKARTA (JP): The Supreme Audit Agency (BPK) said on Monday
that during the 10 months President Abdurrahman Wahid has been in
office it completed four audits of state financial transactions
worth Rp 901.88 trillion (US$101 billion).

BPK chairman Satrio Budihardjo "Billy" Joedono said in a
report to the People's Consultative Assembly the audits covered
the 1998/1999 and 1999/2000 state budgets, regional
administration budgets, state companies and enterprises owned by
local administrations, the central bank and nonbudgetary revenue
and spending.

"We have submitted our reports and findings to the House of
Representatives," Billy said.

The audits, he said, uncovered 2,851 instances of
irregularities in the public sector's finances involving a total
value of Rp 234.95 trillion, or 24.23 percent of the total value
of the transactions audited.

"The audits showed most of the irregularities consisted of
deviations from or violations of laws or regulations regarding
state finances or budgetary procedures," Billy said.

All this, he added, indicated corruption, nepotism and
collusion.

He added the agency reported its findings to the House faster
than it did two years ago and that the reports were much more
detailed.

"Two years ago, BPK submitted its semester audit of the state
budget to the House seven months after the end of the semester
being reviewed, but since last October these reports were filed
with the House only three months later," Billy said.

Citing an example, he said the audit of the second semester
(October 1997 to March 1998) of the 1997/1998 state budget was
submitted to the House on Nov. 28, 1998.

"But our audit of the second semester of the 1999/2000 budget
was reported to the House on July 17," he said.

Billy said the agency also conducted special audits, such as
those of Bank Bali, which has been embroiled in a politically
charged scandal, the social safety net program and spending for
the 1999 general election.

"These special audits were done as part of the effort to build
good governance," he pointed out.

Billy also said an audit of the central bank's balance sheet
as of May 17, 1999, the first ever audit of Bank Indonesia,
resulted in a disclaimer statement after uncovering strong
indications of the massive misuse of the central bank's liquidity
support to local banks during the economic crisis.

The latest investigative audit, reported to the House last
week, found potential losses to the state of Rp 134 trillion due
to the improper extension and misuse of the central bank's
liquidity support. (bkm)