JP/3/BPK

JP/3/BPK

BPK report highlights how corruption rules in RI

Tony Hotland
The Jakarta Post/Jakarta

Reports of misuse and alleged corruption of state funds by the
Supreme Audit Agency (BPK) last week were perhaps the clearest
indication that the die-hard practice of graft could now be
called a die-hard institution.

The BPK reported to the House of Representatives last week it
had discovered irregularities of Rp 37.4 trillion (US$4.1
billion) in 377 state institutions from 2002 until the first
semester of this year. The huge amount is equal to more than 63
percent of the government fuel subsidy this year.

And most shockingly -- but unsurprisingly -- the body
responsible for overseeing the nation's judiciary, the Attorney
General's Office (AGO), topped the list with the highest
percentage of irregularities, about 51.8 percent of Rp 618.7
billion audited within the office.

This is not the first time the office has topped such a
notorious list. It was named the biggest "money abuser" last
year, with the BPK reporting the misuse of 95 percent of Rp 11.99
billion of non-taxable funds in the office.

The BPK has long been reporting similar findings for years. It
disclosed Rp 12 trillion worth of financial irregularities in the
implementation of the state budget in 1999.

The agency found 1,076 cases of irregularities in the 2001
state budget with potential losses of trillions of rupiah, mostly
in state-owned enterprises. These enterprises were reported to
have misused a staggering Rp 87 trillion of state funds in 2000.

Yet, despite the consecutive negative reports by the agency,
analysts and officials say no one in power seems to be able or
willing to seek solutions to the problem, with investigations
petering out and few officials brought to justice.

Agency chairman Satrio "Billy" Joedono has complained during
many occasions about the reluctance of the government in
following up on the reports, with a sluggish and half-hearted
response from the House, National Police and the AGO.

These reports often end up being shelved without proper
inquiries or court action resulting. Accused institutions
generally refute the BPK's reports and cases stop abruptly.

Billy reported last year that of the 5,881 cases causing over
Rp 2 trillion in possible state losses previously reported, only
155 cases worth Rp 6.5 billion had been settled.

Many suspects of corruption offenses have also escaped legal
sanctions.

Even after anti-corruption demonstrations broke out following
the fall of former president Soeharto's regime six years ago and
the much-vaunted reform movement came to power, legal enforcement
has not improved, analysts say.

Of all the reform agendas steadfastly pledged by Soeharto's
successors -- including the likely president-elect Susilo Bambang
Yudhoyono -- the willingness to properly follow-up BPK reports,
is essential.

A BPK report issued early this year, found irregularities of
more than Rp 26 billion in 2003 at the Office of the Coordinating
Minister for Political and Security Affairs, led by Susilo at the
time.

Lawyer Todung Mulya Lubis said one of the main reasons why
many state agencies easily dismissed BPK reports was the
difference in auditing methods between those agencies and the
BPK.

"The government should seek one standardized auditing method
to avoid such a denial and discrepancy of audit results in the
future. We can't let such a thing become a reason," he told The
Jakarta Post over the weekend.

The reports should be the prime basis for the government in
probing leakages of state funds," he said

But to effectively do this, there needed to be a shift in the
mindset in the government officials.

"The next government must seriously verify and cross-check BPK
reports or investigate them and we must never ignore such
reports.

"Making those reports is very expensive," he said.