Govt loses $5m through first half of 1994/1995
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)