BPKP finds irregularities in 2003 budget spending
<p>BPKP finds irregularities in 2003 budget spending</p><p>Dadan Wijaksana, The Jakarta Post, Jakarta</p><p> The Development Finance Comptroller (BPKP) has found a total
of 1,697 irregularities in the 2003 budget spending as of April,
with potential losses projected at around Rp 1.01 trillion
(US$123 million).</p><p>"The amount (of irregularities) came from a total of Rp 23.6
trillion in spending we have inspected since April," BPKP
chairman Arie Soelendro told legislators during a hearing with
the House of Representatives Commission IX on financial affairs.</p><p>The irregularities took place at state institutions,
ministries and regional governments.</p><p>The agency defines "irregularity" as a deviation from the law,
a deviation from a set of objectives, and noncompliance with
ethics or efficiency.</p><p>As the BPKP does not specifically allege corruption or
embezzlement in the report, irregularities can thus mean outright
losses or simply potential losses.</p><p>Among state institutions, the worst performer is BP Migas, the
country's oil and gas upstream authority, with 19 cases of
irregularities that may cause a loss of Rp 29.2 billion -- the
largest potential loss by a state institution.</p><p>This was followed by the State Logistics Agency (Bulog) with
22 cases and a potential loss of Rp 1.8 billion.</p><p>As for regional governments, North Maluku province recorded
the largest number of irregularities, with 50 cases valued at a
potential loss of Rp 9.1 billion. North Sumatra had the second
largest number of irregularities, with 28 cases at Rp 2 billion.</p><p>During the hearing, Arie also said that the agency was facing
difficulties pushing ahead with the audits in order to follow up
with the findings for various reasons.</p><p>"For example, of the total 1,697 cases, only 296, or 17
percent, have been followed up with an audit," he said.</p><p>The reasons ranged from the lack of attention from the
management of the audited institutions, to the absence of
sanctions from the government, to a simple failure of the
management to follow up, he added.</p><p>As far as the irregularities in regional governments were
concerned, Arie said, the Regional Autonomy Law had made it
harder for the BPKP to proceed with its investigation.</p><p>The law gives regions across the country bigger roles in
managing their own affairs, including their supervisory roles.</p><p>Meanwhile, the report also mentioned that, as of April, the
agency had submitted to the Attorney General's Office a total of
15 cases with a strong indication of corruption, valued at a
total of Rp 12.6 billion.</p><p>"A litigation process is now underway at the Attorney
General's Office," the report said.</p>
of 1,697 irregularities in the 2003 budget spending as of April,
with potential losses projected at around Rp 1.01 trillion
(US$123 million).</p><p>"The amount (of irregularities) came from a total of Rp 23.6
trillion in spending we have inspected since April," BPKP
chairman Arie Soelendro told legislators during a hearing with
the House of Representatives Commission IX on financial affairs.</p><p>The irregularities took place at state institutions,
ministries and regional governments.</p><p>The agency defines "irregularity" as a deviation from the law,
a deviation from a set of objectives, and noncompliance with
ethics or efficiency.</p><p>As the BPKP does not specifically allege corruption or
embezzlement in the report, irregularities can thus mean outright
losses or simply potential losses.</p><p>Among state institutions, the worst performer is BP Migas, the
country's oil and gas upstream authority, with 19 cases of
irregularities that may cause a loss of Rp 29.2 billion -- the
largest potential loss by a state institution.</p><p>This was followed by the State Logistics Agency (Bulog) with
22 cases and a potential loss of Rp 1.8 billion.</p><p>As for regional governments, North Maluku province recorded
the largest number of irregularities, with 50 cases valued at a
potential loss of Rp 9.1 billion. North Sumatra had the second
largest number of irregularities, with 28 cases at Rp 2 billion.</p><p>During the hearing, Arie also said that the agency was facing
difficulties pushing ahead with the audits in order to follow up
with the findings for various reasons.</p><p>"For example, of the total 1,697 cases, only 296, or 17
percent, have been followed up with an audit," he said.</p><p>The reasons ranged from the lack of attention from the
management of the audited institutions, to the absence of
sanctions from the government, to a simple failure of the
management to follow up, he added.</p><p>As far as the irregularities in regional governments were
concerned, Arie said, the Regional Autonomy Law had made it
harder for the BPKP to proceed with its investigation.</p><p>The law gives regions across the country bigger roles in
managing their own affairs, including their supervisory roles.</p><p>Meanwhile, the report also mentioned that, as of April, the
agency had submitted to the Attorney General's Office a total of
15 cases with a strong indication of corruption, valued at a
total of Rp 12.6 billion.</p><p>"A litigation process is now underway at the Attorney
General's Office," the report said.</p>