Newly approved finance bill welcomed

Newly approved finance bill welcomed

Dadan Wijaksana, The Jakarta post, Jakarta

The passage of the state finance bill should signify the
government's commitment to eradicating corruption although
whether or not it will be effective depends on how the bill is
implemented, experts said Friday.

Supreme Audit Agency (BPK) Chairman Satrio B. Joedono said the
bill contained principles which provided solid ground for efforts
to help eradicate the rampant abuse of state funds.

He cited article 35 of the bill.

"Article 35 stipulates principles that carry personal
responsibility for those holding and using state funds. This is
expected to reduce irregularities that keep on happening in the
country," Billy, as he is nicknamed, told reporters.

Under the article, state officials abusing state funds must
repay all money stolen from the state.

The House of Representatives approved the bill on Wednesday,
which the government claimed was a milestone towards improving
transparency, as well as accountability in managing state
finances.

The government says the bill will help improve the
implementation of good governance principles, expected to reduce
irregularities in the use of state funds.

"I'm optimistic ... because it (the bill) contains
international principles on good governance," said Minister of
Finance Boediono Friday.

The bill also emphasizes the principle of equality before the
law, meaning corrupt officials ranging from the head of a unit in
a state project up to the minister or the head of a department or
institution will face equal punishment ranging from fines to
imprisonment.

All these were absent in the past, and had been used as
justification for the fact that there had rarely been follow-up
action taken whenever findings of irregularities were announced,
including by the BPK. Despite having been the cause of huge
losses to the state, irregularities are often left uncovered and
those responsible have remained untouched.

To this extent, Billy agreed with the government over the
necessity of the bill.

However, he warned the bill would be toothless in the fight
against corruption, if a clear mechanism for implementation
remained absent.

The mechanism of implementation will be stipulated in the
upcoming bill on state treasury.

Billy said the struggle was not over yet because the country
needed to make sure there was a logical connection between
article 35 and the state treasury bill.

The government has submitted to the House the treasury bill at
the same time as the state finance and state audit bills, all of
which are considered one package.

Meanwhile, former finance minister Bambang Sudibyo hailed the
bill as a huge leap towards eliminating corruption.

"But I doubt the effectiveness of the bill if it is not
supported by other policies that discourage state officials from
abusing state funds, such as increasing their salaries for
instance," he told The Jakarta Post.

"We need to treat corruption eradication at both ends, one by
strengthening punishment and the other by reducing factors which
encourage state officials to steal state funds."