Councilor calls for end to 'tips' for BPKP auditors

JAKARTA (JP): A veteran city councilor said on Thursday most of the 60 city-owned firms had given hundreds of millions of rupiah to auditors from the Development Finance Comptroller (BPKP) as "incentives".

Head of Commission B for economic affairs Djafar Badjeber called for an immediate halt to this practice.

"The council will soon ask Governor Sutiyoso to order executives of city firms to no longer give incentives to BPKP auditors," Djafar said after meeting with executives of city- owned market operator PD Pasar Jaya.

PD Pasar Jaya president Syahrir Tanjung said on Thursday his company gave Rp 60 million (US$8,570) to the 10 BPKP employees who audited the firm's 1997 financial report in December last year.

However, Syahrir said there was nothing wrong with this practice.

"It's normal. It's (meant to pay) for their time auditing our firm, which took eight months," Syahrir said after meeting with members of the commission.

He said Sutiyoso knew about and approved the "tips".

Many people have lamented the continued presence of such bribery in the city administration, which flies in the face of the effort to put an end to corruption, collusion and nepotism.

Critics say city firms should not give the auditors bribes, incentives or tips, because they are civil servants who have already been paid by the people.

Djafar said he believed the incentives were much larger if auditors discovered significant problems in a company's financial reports.

"The practice should be abolished. It should not be considered a normal practice any longer," the councilor said.

In a related development, Syahrir denied media reports that corruption amounting to Rp 8 billion had taken place in his firm following a summons from the Jakarta Prosecutor's Office last month.

He confirmed the firm's executives were summoned for questioning over alleged corruption and manipulation.

"But there were no suspects or witnesses. The prosecutor's office just asked for an explanation," Syahrir said.

He said the firm's preaudited 1997 financial report put its pretax profit at Rp 13 billion, while the BPKP-audited financial report put the pretax profit at Rp 5 billion.

The company's director for financial affairs, Agusman Badaruddin, said the Rp 8 billion difference occurred because of losses suffered by a number of its markets, including Pasar Baru market in Central Java, which were gutted by fire during this period.

With a pretax profit of Rp 13 billion, Pasar Jaya would be required to pay Rp 4 billion in tax, compared to the Rp 2 billion in tax it would have to pay for Rp 5 billion in profit.

"The prosecutor's office accepted the firm's explanation," he said.

Pasar Jaya signed a memorandum of understanding on Wednesday with Australia's Melbourne Market Authority to revitalize Kramat Jati wholesale market in East Jakarta. (jun)