Govt loses $5m through first half of 1994/1995
JAKARTA (JP): The Supreme Audit Board yesterday revealed government losses of Rp 11.1 billion (US$4.99 million) from fraud at six of the government's institutions during the April- September period last year.
The Board's chairman, J.B. Sumarlin, refused to name the six institutions where the fraud had taken place.
"We have already submitted our findings to the House of Representatives, so you'd better ask them," Sumarlin said, warding off an onslaught of questions by journalists.
Under Indonesia's constitution, the Supreme Audit Board is required to report the findings of its audits to the House of Representatives. The Board used to present its reports yearly, however, since last fiscal year, the board has presented reports every six months.
Responding to Sumarlin's presentation of the Board's findings, the House's speaker, Wahono, said the Board's reports would assist the House in exercising its budget rights, especially in supervising the implementation of state budgets.
Citing criticism from the Indonesian Ulemas Council, State Minister for Administrative Reform T.B. Silalahi and the government's audit agency, Wahono said mismanagement of the government's budget is a rampant problem; especially mismanagement due to corruption and collusion between government officials and businessmen.
Coverage
Sumarlin explained that the Board's auditing activities cover 180 targets: seven were related to state and local administrations' assets; 86 items were on the state budget; 36 on local administrations' budgets; 29 on state-run enterprises; 16 on local administration-run firms; and six on cases related to government losses.
Sumarlin said there are still many government and local administration assets not included in the inventory reports. Some state-owned lands have yet to be registered properly and are not equipped with certificates.
He also explained that the government could not yet collect a large amount of delinquent tax payments on land, property and import duties.
The Board also discovered a number of state-run enterprises holding large amounts of delinquent debt. The enterprises, Sumarlin said, often recorded inflated prices for the goods they bought, and often goods were procured even if they had no use for the company.
It also found a large amount of bad loans at four development banks owned by local administrations. Again, Sumarlin declined to name the banks and the amount of the bad loans.
Sumarlin also revealed that the government has been unable to collect Rp 2.76 billion in forest concession fees and US$3.19 million in reforestation funds from forestry companies.
Minister of Forestry Djamaludin Suryohadikusumo said recently the government collected some Rp 600 billion in reforestation funds last year and expected to collect another Rp 800 billion this year.
When asked on the discrepancy between the government's records and that of the Board's on funds left over from the 1987 general election, Gandhi, one of the Board's auditors, said his agency had investigated the leftover funds.
"We have already found out that the general election funds were used to finance not only activities in the 1987-1988 fiscal year but also activities in 1988-1999 and 1989-1990 fiscal years," Gandhi said.
He noted that the general election committee had used Rp 2.21 billion of the leftover fund of Rp 2.22 billion, and the committee returned the difference of Rp 4.93 million to the government's coffer on Oct. 30, 1990. (rid)