Tue, 15 Feb 2005

Foreign auditors to aid BPK watch Aceh fund

Urip Hudiono, The Jakarta Post, Jakarta

The Supreme Audit Agency (BPK) will collaborate with state comptrollers from foreign donor countries to audit all financial aid channeled to tsunami-stricken Nanggroe Aceh Darussalam.

The audit will start after an Asian Development Bank (ADB)- sponsored conference in April, to be attended by the donor nations and other tsunami-affected countries in the region.

The BPK is urging the government to immediately conduct proper accounting of the funds by deploying its internal auditors from the inspectorate general to monitor all fund channeling and reconstruction-related ministries.

The BPK has called for the deployment of internal auditors from the Development and Finance Comptroller Agency (BPKP), which was asked by the BPK to draft the standard for the accounting process.

"It has been nearly two months since the deadly disaster. Yet, not a single auditor has been deployed at the devastated areas to make an account of the channeled funds," chairman Anwar Nasution said on Monday during a meeting with the Coordinating Minister for People's Welfare Alwi Shihab, BPKP chairman Arie Soelendro and agency inspector generals.

"In other countries, auditors are immediately coordinated and deployed at the same time when emergency relief efforts in the wake of a disaster begin," he said.

The BPK set up its auditing team for the Aceh aid funds since Feb. 1. The team is expected to work for a one-year term.

Anwar said proper accounting and auditing processes were necessary so the public and the international community believed the donations were being handled transparently and accountably.

"It is also a form of gratitude to them (the donors) and a test case for us to show our seriousness in combating corruption," he said.

The upcoming conference, he said, was needed to share experience with other countries on disaster management and the auditing of relief aid funds.

"State audit agencies from Japan, Australia, the United States and European Union have expressed their desire to cooperate with us."

The head of the BPK's Aceh audit team, J. Hanjari, said the agency had so far noted over Rp 40 trillion (US$4.33 million) of aid funds received for Aceh. The funds consisted of some Rp 39 trillion from foreign donor countries, Rp 163.9 billion from state-owned enterprises and Rp 894.38 billion from the public.

"The funds do not include publicly collected funds, which will be audited by public accountant offices," he said. "We have yet to receive reports of funds coming from the state and regional budgets."

Alwi, who also heads the National Disaster Coordination Board, welcomed the BPK's call for the accounting process and audit.

"We are ready to give BPK their 'ammunition' for the audit, which is a complete accounting report of the funds," he said. "The President himself has always asked us to keep account of every single penny disbursed for Aceh."

Alwi said his office had accounted some Rp 900 billion of funds as of Jan. 26, and would announce a new figure every month as the funds continued to pour in.

Arie said the BPKP would immediately work on the accounting standards requested by the BPK. "We will thoroughly identify any needed regulations and coordination between institutions for the standard and propose the government address them," he said.