BPKP uncovers budget abuses of Rp 9.5t

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.