Govt audits pension funds

Govt audits pension funds

JAKARTA (JP): The government will audit pension funds at least
every five years, Ministry of Finance spokesman Agus Haryanto
said yesterday.

Agus said auditing could occur any time there was an
indication that a pension fund was violating regulations.

Based on a ministerial decree, signed by Minister of Finance
Mari'e Muhammad on Jan. 22, 1997, the Directorate of Pension
Funds of the Directorate General of Financial Institutions will
notify a pension fund before an audit.

Pension funds must help auditors gain data or certificates
from public accountants, actuaries or other parties related to
their funds. But they can refuse to be audited if they have not
received notification from the appropriate government office.

The government may replace a pension funds' executive board
within 60 days as a sanction for not cooperating with, or
misleading, an audit. A pension fund may be dissolved after the
60-day deadline.

The government has licensed 265 pension funds. (icn)