New audit system sought to eliminate 'tactical funds'
New audit system sought to eliminate 'tactical funds'
Ridwan Max Sijabat, The Jakarta Post/Jakarta
A review of the audit systems in this country are necessary to
eliminate the raising and usage of slush funds, which have become
a common practice in the bureaucracy, experts say.
They say the current audit methods could not usually detect
the presence of funds coming from sources other than the state
budget, which is against the principles of good governance.
"We need a comprehensive audit system, which requires the
Supreme Audit Agency (BPK) to examine annual financial reports
submitted by all state institutions, state agencies and state
enterprises and verify their assets," said Ngadisah, the rector
of the state-run Institute of Public Administration (IIP).
Under the current audit system, BPK scrutinizes only book
reports of state institutions and of state enterprises.
"BPK has never followed up its investigations into alleged
financial leakages, verified state institutions' expenditures and
assets, or audited state officials' wealth," she said.
She said the collection and use of tactical funds was prone to
corruption or at least unaccounted for, as evidenced by the case
of the General Elections Commission (KPU).
The Corruption Eradication Commission found the KPU officials
raised Rp 20 billion (US$2.1 million) in "tactical funds" from
kickbacks collected from companies that won tenders to provide
election materials.
"Slush funds come from numerous sources, including kickbacks,
seminars, public service events and 'gifts' from individuals or
companies, and are commonly used not only to cover unexpected
spending, but also to increase officials' income," Ngadisah said.
Dedi Haryadi, a researcher and chief editor of bimonthly
bulletin Bujet in Bandung, West Java, urged a phasing out all
non-budgetary funds and verification of all spending by state
institutions and enterprises by the BPK.
"Amid the intensive campaign for transparency and good
governance, the President should take concrete measures to scrap
off-budget revenues and expenditures because any use of funds
must be expected and predicted and accounted for.
"Therefore, all public officials from the President,
ministers, senior officials to local officials are required to
report their operational costs, including the use of tactical
funds," he said.
Ngadisah said it was mandatory for state officials to submit a
draft budget in their institutions and spell out the revenue
sources in order to eliminate tactical funds.
"Revenue sources should be limited to the state budget and
money collected from legal sources, while the use of funds for
unexpected spending should be limited to extreme emergency
payments," she said.
She also suggested greater authority for internal comptrollers
to supervise the spending of all budgetary funds in all state
institutions.
Both Ngadisah and Dedy said the country was in need of a
regulation governing the fee system in development projects and a
new remuneration system of state employees to prevent them from
raising tactical funds, thereby curbing corruption.