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)