Observers call for probe into 'tips' for auditors

Observers call for probe into 'tips' for auditors

JAKARTA (JP): Legal observers on Saturday called on the
government to investigate alleged corruption at city-owned market
operator PD Pasar Jaya.

Indonesian Corruption Watch executive Bambang Widjoyanto and
criminal law expert Loebby Loqman told The Jakarta Post that
opening a probe into Pasar Jaya would help the country's
anticorruption drive.

"State prosecutors should be proactive in inquiring into the
practice of under-the-table payments, and not necessarily wait
for people to file a report," Bambang said.

An article in the new antigraft law passed by the House of
Representatives last month, stipulates "law enforcers will be
allowed to receive information on corruption from all parties,
including parties whose identity shall remain confidential".

Bambang, also the chairman of the Foundation of the Indonesian
Legal Aid Institute, said the antigraft law provided a strong
legal basis for officials to probe alleged corruption at the
market operator.

Pasar Jaya came under fire after its president Syahrir Tanjung
said in a hearing with city councilors last Thursday, that the
firm paid "incentives" totaling Rp 60 million (US$8,570) to 10
employees of the Development Finance Comptroller (BPKP) who
audited the company's 1997 financial report.

Syahrir said the payments occurred with Governor Sutiyoso's
knowledge and approval.

Sutiyoso, however, said on Friday he knew nothing about the
payments, adding that they could be a legacy of the rampant
corruption in the bureaucracy in the past.

He described the payments as unnecessary. "Auditing is part of
the auditors' duties and the auditors receive salaries from the
state for their jobs."

The governor said he ordered Deputy Governor for
Administrative Affairs Abdul Kahfi, who is also a member of the
city's reform team, to investigate the case. The reform team was
established in June 1998 to eliminate corruption, collusion and
nepotism in the city administration.

Attitude

Meanwhile, Loebby said the case was the result of the attitude
of businesspeople, who in the past considered giving auditors
money or other "facilities" while a financial audit was underway
a common practice.

"People said giving the money was a sign of respect for the
auditors' work. In fact, that's the reason why corruption,
collusion and nepotism mushroomed in the country," he said.

He said it would be difficult to prove whether the money was
given to the auditors as a reward for their work, or to
"persuade" them not to file negative reports with the
comptroller.

"A thorough investigation is therefore needed. Whose money was
used by PD Pasar Jaya for the auditors? Did the case bring losses
to the state," Loebby said.

He suggested Pasar Jaya and BPKP prove to the public the
"incentives" given to the auditors were not meant as bribes.

"BPKP should reveal to the public its original audit... PD
Pasar Jaya should also demonstrate to the public that the
incident did not cause the state losses," he said.

Bambang also said BPKP should form an investigation team to
judge whether the work of the auditors was in line with BPKP's
standard procedures.

"The internal team should investigate whether there was an
abuse of authority which violated auditing procedures," he said,
adding that the team could also probe the criminal aspects of the
case. (asa)