BPKP uncovers budget abuses of Rp 9.5t
The Jakarta Post, Jakarta
The Development Finance Comptroller (BPKP) said it had found 14,541 cases of irregularities in the implementation of the 2000 and 2001 national budgets by state institutions, causing some Rp 9.5 trillion (US$9.5 billion) in losses to the country.
Of the total, some Rp 2.5 trillion of state funds had been misused in 2001 alone, according to comptroller chairman Arie Soelendro on Wednesday.
"The State Logistics Agency (Bulog) had the worst performance of all. We recorded a total of 243 irregularities over the two years with some Rp 4.45 trillion of state funds being misused," Arie said.
Arie was quoting from a report submitted during a hearing with the House of Representatives' Commission V, which oversees financial affairs.
Following Bulog in second and third places were the state- owned oil and gas company Pertamina and the Ministry of Finance respectively.
While the massive abuses in Pertamina, which cost the nation almost Rp 3 trillion during the period, came as no surprise given the state company's long record of corruption, it was the figures for the Ministry of Finance that caused something of a stir.
The BPKP reported that the Ministry of Finance had witnessed the misuse of Rp 1.2 trillion spread over a total of 891 cases, almost 20 times the number during the previous two years.
The report only served to confirm the fact that inefficiency and harmful practices are still flourishing in state institutions.
Regarding the overall findings, it was revealed that almost all the irregularities occurred within the first six months of 2001.
"These figures are based on the BPKP's regular inspections during that period," Arie added.
The BPKP's report highlighted the audit results on the use of state funds by ministries and other government institutions.
Arie also said that of the overall number of cases, around half of them, or 7,671 cases, had been followed up, with some Rp 6.4 trillion being recovered and returned to the treasury.
A follow-up means that the agency hands over its findings to either the institution in question for further action or the Attorney General's Office for legal proceedings.
During the period, the agency reported a total of 49 corruption-related cases to the Attorney General's Office (AGO). The legal action that was subsequently taken by the AGO enabled the government to regain Rp 270 billion worth of misused funds.
However, Arie said, there remained Rp 3.1 trillion of misused state funds which his office was still tracking down.
Citing his office's limited authority and the lack of supporting evidence, Arie claimed that it would be difficult to recover the remaining funds.
As some of the irregularities had been uncovered in the regions, the new law on regional autonomy made it even harder for the agency to proceed with its investigations.
The law gives regions across the country a bigger role in managing their own affairs, including financial supervision.