Foreign auditors to aid BPK watch Aceh fund

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.