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)