Over $873m in state losses not yet recovered

Over $873m in state losses not yet recovered

JAKARTA (JP): The Government Audit Agency disclosed yesterday
that it has yet to follow up on thousands of cases involving more
than Rp 2 trillion (US$873.36 million) in corruption-related
losses at government offices and state-owned firms.

Soedarjono, the head of the agency, said in a hearing with
members of the Budgetary Commission of the House of
Representatives yesterday that the figure reflected losses
incurred up until last September.

In just the second quarter (July-September) of the current
(1995/1996) fiscal year, Soedarjono said his office found 6,549
instances of financial irregularities and corruption at
government institutions and state firms, causing losses of Rp
186.29 billion.

Of the number detected, 5,729 cases involving losses of Rp
161.67 billion have not been followed up, he said.

But, he said, findings in the second quarter were mild
compared to the entire 1994/1995 fiscal year, when the agency
uncovered a total of 9,631 irregularities involving Rp 2.3
trillion. More than 8,220 cases causing losses of up to Rp 2.18
trillion are still pending.

Legislators originally discovered the information upon their
visit to the agency's Jakarta branch, where they were told that
as of September, 2,700 cases in Jakarta alone involve almost Rp
895.45 billion.

In addition, they discovered that only 16 cases of corruption
involving Rp 21.19 billion had been submitted to the prosecutor's
office. The cases allegedly involve nine ministries and one state
minister's office.

Soedarjono, in response, said that every ministry would have
to improve its supervision mechanisms in the future.

He said there is currently no system in place to check up on
the activities of government offices and if they're being handled
cost efficiently.

"Each office is currently formulating its own standards, which
involve very technical aspects," he said.

Tadjuddin Nur Said, a legislator from the Golkar faction,
asked if the agency has a means of uncovering the fees that
ministries impose on the state-owned firms under their
supervision.

He cited as an example the case of Minister of Transportation
Haryanto Dhanutirto, whose ministry was accused of financial
misappropriations of more than Rp 9 billion, much of which
occurred within and at the expense of state-owned firms.

The allegations were denied by the government with a statement
issued by Minister/State Secretary Moerdiono.

"How do you control fees which are imposed (on state-owned
firms) in the name of the state?" Tadjuddin asked.

He also asked the agency to explain how "agreements" made
between state-owned firms and the private sector are supervised.

"The recent hike in toll-road fees took place because there
was a simple agreement between (state-owned) PT Jasa Marga and
the private sector company which developed the road," he said.
"Such a tariff increase should, I believe, be based on a
government decree."

Tariffs of Jakarta's inner-city toll roads increased last year
from Rp 2,000 to Rp 2,500, in spite of public protests and
legislative concern.

Soedarjono, responding to questions on how the agency recorded
the profits obtained by foundations owned by state firms, said
his office had no direct authority to look into the financial
matters of the foundations.

But, he said, "We would calculate the profits of a
foundation's activities by comparing them with market prices."
(pwn)

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