Rp 3.8t in irregularities found in state finances
Rp 3.8t in irregularities found in state finances
JAKARTA (JP): The Supreme Audit Agency (BPK) reported on Monday that it had found some 1,643 cases of financial irregularities involving a total sum of Rp 3.8 trillion (US$418 million) in the management of the 2000 state budget and accounts relating to the first five months of the 2001 budget.
BPK Head Satrio B. Judono submitted the findings to the House of Representatives in a plenary session.
In comparison, BPK disclosed earlier this year a greater number of financial irregularities valued at nearly Rp 12 trillion in the implementation of the 1999 state budget.
The BPK report did not specifically allege corruption or embezzlement in the report, but implicitly divided the discrepancies into three categories. Hence, irregularities can mean outright losses or simply potential losses.
The three kinds of irregularities are: deviation from the law, non-compliance with austerity and efficiency, and deviation from a set of objectives.
The report covered implementation of the state budget by the previous administration of president Abdurrahman Wahid, who was ousted by legislators in July this year after being implicated in two financial scandals and ongoing criticism over his competency.
BPK said that the largest number of irregularities was in the category of deviation from the law.
"The irregularities are mostly in the form of deviation from the law," Judono said.
BPK said that in 2000 the largest number of irregularities was found at the Ministry of Foreign Affairs (32.82 percent), followed by the Ministry of Energy and Mineral Resources (31.27 percent).
Meanwhile on the revenue side, the Ministry of Health recorded the largest number of irregularities, followed by the Ministry of Foreign Affairs and the Ministry of Industry and Trade.
BPK discovered financial irregularities involving Rp 3.296 trillion in the year 2000 budget, while another Rp 518.395 billion in discrepancies were identified in the first five months of the 2001 budget year.
Regional administration budgets (APBD) recorded the largest number of irregularities in 2000 with 1,149 cases involving Rp 1.444 trillion, followed by state-owned enterprises (BUMNs) with 102 cases totaling Rp 1.243 trillion, central government expenditures worth Rp 307 billion, and central government revenues valued at Rp 300.7 billion.
In the first five months of 2001, APBD again registered the largest number of irregularities with 224 cases involving Rp 344.93 billion, followed by state expenditure accounting for 55 cases worth Rp 112.74 billion, state revenue with 23 cases valued at Rp 107.21 billion, while BUMNs registered 11 cases totaling Rp 60.72 billion.
Judono said that BPK had reminded concerned parties to minimize state losses, but had seen little reaction from them.
"Efforts to put an end to the state losses have received little attention from concerned parties, even though BPK has issued direct and indirect directives," he said.
When former president Abdurrahman Wahid took office in October 1999, he vowed to prosecute big corruptors and government officials involved in graft and corruption.
However, his efforts to stamp out graft and corruption were severely undermined by his alleged involvement in two financial scandals, dubbed Buloggate and Bruneigate, which led to his removal from office on July 23.
Elsewhere, Judono called on the government to demand financial compensation from those responsible for state losses.(03)