Non-budgetary funds 'must go' into state coffers by July 10
Non-budgetary funds 'must go' into state coffers by July 10
JAKARTA (JP): Finance minister Bambang Sudibyo announced on
Thursday that all non-budgetary funds belonging to government
ministries and state agencies, including the military, must be
transferred to a special state revenue account by July 10 at the
latest.
Bambang said that the Development and Finance Comptroller
(BPKP) would then investigate the source of the funds to make
sure that ministries and agencies had transferred the correct
amounts to the state coffers.
"Off-balance sheet funds must be transferred at the latest by
July 10, 2000," he said at a media conference.
He also said that in the future all non-tax state revenue must
be transferred to the state coffers in accordance with the
existing procedures and rulings.
The finance ministry issued a decree on Wednesday to enforce
the new measure.
Non-budgetary, or off-balance sheet funds, are basically non-
tax revenues collected by ministries and state agencies but not
included in the state budget.
They have been the source of corruption in the past, and
reportedly used to finance the 32-year authoritarian rule of
former president Soeharto.
In a bid to curb corruption as well as to implant good
governance and transparency in state institutions, the government
has decided to eliminate off-balance sheet funds and transfer
them to a state revenue account subject to a public audit.
Bambang said that in the case of reforestation funds,
estimated to be more than Rp 4.7 trillion (US$542.73 million),
the forestry and plantations ministry must transfer them to a
special state revenue account at state-owned Bank Mandiri by
today (Friday) at the latest.
Director General of the State Budget Anshari Ritonga said that
funds under the management of the National Logistics Agency
(Bulog) and the Indonesian Bank Restructuring Agency (IBRA) were
not off-budget.
"The funds are being managed by the agencies under separate
rulings," he said.
Ritonga also said that funds used to finance routine
expenditure and projects at each of the institutions were
exempted from the new ruling.
Ritonga said that out of 58 ministries and state institutions,
21 claimed they did not have off-budget funds, 24 reported that
they did while 13 had yet to report to the finance ministry.
He said that at the initial reporting stage the amount of off-
budget funds totaled Rp 598 billion, but last reports say the
amount has dropped to Rp 15 billion.
Both Bambang and Ritonga failed to provide a clear explanation
for the huge drop.
Bambang said that all the government ministries and agencies,
including the 21 institutions that claimed they had no off-
budget funds, were expected to explain themselves.
"To be frank, I myself don't know whether the finance ministry
has off-budget funds," Bambang said.
Asked what sanctions were to be applied to institutions that
made false reports, he said that the issue was still being
discussed by the government and the BPKP.
Coordinating Minister for Economy, Finance and Industry Kwik
Kian Gie said on Wednesday that the government had yet to reach
agreement on what sanction to give to institutions that had
falsified reports and how to design an effective measure to allow
the BPKP to audit all ministries and state institutions.
Kwik said that to audit the military a green light from the
defense and security ministry was needed.
The issue of off-budget funds made headlines recently,
particularly following reports that certain people within
President Abdurrahman Wahid's inner circle had been involved in
the embezzlement of some Rp 35 billion from Bulog.
The case is still being investigated.(rei)