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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